RATE OF INTEREST

Evening Post, Volume CXIII, Issue 112, 14 May 1927, Page 8

RATE OF INTEREST

INCREASE CRITICISED

MR. HOLLAND'S TOUR

(By Telegraph.—Press Association.) ! • TIMABU,. This Day. Mr. 11. E. Holland, Leader of the Opposition, addressed a well-attended meeting hero to-night. He spoke on the lines of his North Island addresses. With reference to the decision of the Associated Banks to raise the rate of interest to 7 per cent., he predicted that this would precipitate a crisis in the Dominion. An increase was possible through the existence in the Dominion of a private banking monopoly, which completely dominated the position. It was unsatisfactory that the Bank of New Zealand, in which the Government had intervened, was found functioning as an effective part of this monopoly, which was loading the guns against the local, bodies and private borrowers. It should be explained why the interest charges were raised and credit made dearer at a time when cheap money was more needed in this country than ever before and when 'the Bank of England was reducing its interest rate. An explanation was also needed as to why this was done at a time when increases in bank dividends were being indicated. The Labour Party proposed to transfer from private banking the monopoly and power af to act as a central ban^nd to concentrate the full power in the State Bank, which would have the sole rieht of note issue and would provide the machmery for cheap credits for public SSXr P*-*«d second-

Mr. Holland was accorded a hearty vote of thanks. J