"A DELIBERATE TRAP"
EUEAL ADVANCES BONDS
MR. POLSON'S ALLEGATION
The allegation made by the Independent member for Stratford, Mr. W. J. Poison, in the House of Representatives, last Week that the Royal Commission on Rural Credits of 1925, had deliberately laid a trap for the Hon. W. DowniQ Stewart to walk into, was replied to by Colonel J. J. Esson, who was chairman of the Commission, in an interview in Christchurch. Colonel Esson emphatically dissociated himself from the suggestion that a trap had been delibcratly laid for the then Minister of Finance, and said that no "such, thing had occurred. Commenting on Mr. Poison's remarks, he stated that the Commission's report did not advocate State guarantee ofthe rural advances bonds. On the contrary, .all through it directly recommended the adoption of the United States. Federal. Farm Loan Board method, of raising funds, under which rural bonds were not State-guaranteed, but the issue and collateral were subject to close Government supervision. AMPLE EVIDENCE. Commenting this morning on Colonel Esson's reply, Mr.' Poison exonerated. Colonel Esson from any attempt to trap the Government, but said that tho Commission did deliberately make the Government responsible for the whole scheme, and that the report contained ample evidence of that. "Tho Audi-tor-General audits the accounts, the Treasury -issues"the bonds, and the State Advances Office administers the system," said Mr. Poison, "and in various other ways the State handles the funds and- the profits and reserves. In addition to this, of course, the Act actually makes the State responsible for the. payment of both principal and interest. This scheme" was in the minds of the Commission, and ponsti-, tuted the trap into which the Government—which . from its subsequent actions.had obviously no intention of guaranteeing -.the bonds —walked. The. Government actually stated when .putting the bonds on the market that there was no State guarantee.'-'
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Bibliographic details
Evening Post, Volume CX, Issue 32, 6 August 1930, Page 10
Word Count
308
"A DELIBERATE TRAP"
Evening Post, Volume CX, Issue 32, 6 August 1930, Page 10
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