THE INTEREST RATE

Dominion, Volume 13, Issue 274, 13 August 1920, Page 8

THE INTEREST RATE

AND THE RIOT OF BORROWING. The borrowing' ojDrnrions ot local bodies, and their possible effect on the money market, were referred to in a question by the member for Invercargili (Mr. Hanan) in the House yesterday. Mr. Hanan asked the Minister of Finance whether he had considered the effect on the money.market by probably increasing the rate of interest of 60 many local bodies raising loans for various purposes. He : suggested that' the issuing of so many of these loans must tend to raise the .rate of interest not only on themselves but against the Government. Did the Minister not think that, something should) be done in the direction of the Government raising enough money to supply the needs of local bodies, in order that the rate of interest could be kept uniform, and that the Government in its own financial operations should bo "relieved from the competition of the local bodies?

- Mr. Massey said he was Borry that at ■ the moment he .could not tell the honourable member how much money tho Government had l lent to local bodies since the beginning' of the present year. Certainly it was a, very large, sum, and he did not think the Government had been able to supply a ; fifth of the money required by'the local bodiep. There was not a local body in New Zealand that was not raising- loans for public, works.They were competing with one another for money, and the tendency of their operations was greatly to increase the rates of interest. Personally, he thought they were going too fast and too far, because owing \to the present costs and the shortage of labour and material they were not getting value for their money. He thought they would be wiser io wait until materials were cheaper. The Government had done its best to keep down the rate of interest, and he thought that if it do away with the present restrictions upon local bodies, their'competition with one another would very quickly raise the ■ ruling rate of interest to eight per cent. LEGISLATIVTCOUNCIL ACT , PROPOSED ELECTORAL DIVISION. A Bill to amend the Legislative Council Act, 1914, which, when it- comes into force, will require members of the Council to be elected and not appointed, was yesterday introduced in the Unner House by Sir .Francis Bell. The Bill contains the following clauses:— The ; first electoral division shall be the northern part' of the North Island, the second electoral division shall'lie the southern part of the North Island, tho third electoral division shall.be the northern part of the South Island, and the fourth electoral, division shall be the southern part of the South Island. The boundaries shall be such as in the opinion of the Commissions provide with tho nearest approximation that the copulation of the first electoral division shall be the same as the population of tho second electoral division, and that the population of the third electoral division shall be the same as the population of the fourth electoral division. The Governor-General may summon to the Council any .person who is a member of tho Executive Council. The number of persons holding office pursuant to this sub-section shall not at any: time exceed two. Every person so appointed a member of the Council shall houl his seat therein so long as he continues to be,' a member of the Executive Cc-un-oil and no longer. • IMMIGRATION RESTRICTIONS , : CASE OF INDIANS. The Immigration Restriction Amendment Bill, a forecast of which was published yesterday,. has been circulated. There is one definition iu the Bill which is of* importance. The general provision of the' Bill is that-New Zealand is to be .free to British subjects. This would not exclude many classes of persons, and especially Indians, to whom serious exception might be taken. Thero has been more outcry about the influx of "Hindus" .recently than ' there ever has been about Chinese. The clause which' may apply-to three people runs: A person shall not be deemed to be of British birth or parentage by reason that he or his parents or either of them is a naturalised British subject, or by reason that he is an aboriginal native, or the v . descendant of an aboriginal native of any dominion, colony, or possession or protectorate of His Majesty. SHORTAGE OF CEMENT DIFFICULTIES IN DAIRYING DISTRICTS. , Tho shortage of cement in the dairying districts was, mentioned in the House by Mr. W. H. Field (Otaki). The dairyI'urmers lad been Kid, said Mr. Field, that cement would be supplied to the dairy 'factories for distribution to the suppliers. But the supplies were coming forward very slowly, and in the meantime necessary works wore held up. The regulations- regarding, dairying accommodation'on tho farms were strict mid the cement was urgently needed. Mr lee, President of the Beard of Trade, replied/that the board was distributing tho available supplies as speedily and as equitably us possible. But the supplies were limited, and the shortago naturally was felt by the users of cement. He was glad to say that the supply-was increasing, although it was still below requirements. MARRIAGE AMENDMENT BILL On the motion of Sir. Francis Bell the Legislative Council yesterday authorised the Statutes Revision Committee to hear counsel for any of the parties appearing before it on its consideration of the Marringe Amendment Bill. A slight amendment of Hie Acts Inter-, pietation Act litis been",rendered necessary by tho fact that Sir William- Fiuser, who is a member of the Exeoutive Council, but is not "a responsible Minister nf tho Crown," has been acting for tho Hon. G. J. Anderson-(Minister of Internal Affairs), while the latter has been laid asido by illness'. Sir Francis Bell explained in the Upper House yesterday that the Act permitted one member of tho Government to sign for another provided that the member of the Executive Council signing was a "responsible Minister of tho Crown." Ho introduced a Bill proposing the dolotion of the words jnst quoted, and tho measure was put through all stages and passed. Its operation will be retroßpecttvo to July 1.