STATE LENDING

Evening Post, Volume CXIV, Issue 103, 28 October 1932, Page 8

STATE LENDING

LAND AND PROPERTY

WHAT MERCHANTS THINK

WISH ACT REPEALED

(By Telegraph.—Press Association.) DUNEDIN, This Day. At the conference of the Associated Chambers of Commerce, Mr. Stronach Paterson to-day moved a remit from the executive asking the Government to withdraw from lending on land and property and leave it to private enterprise. He said that State lending had had disastrous results to the taxpayers. The asking of a moratorium to the Public Trustee for local bodies' sinking funds indicated the position in which the country's finances had got. Mr. A. F. Wright said that they should obtain full information of the position regarding State lending. Mr. F. H.- Bass questioned whether they could get sufficient money from private enterprise. Mr. P. O. Smellie said that at the end of March, 1932, the interest owing to the State Advances Department came to £940,000, and he doubted if it could be recovered. Instead of the losses being-placed on-the bondholders it was being transferred to the whole body of taxpayers. He saw no reason why the State Advances Department should not be ultimately liquidated, and he moved an addition to the remit as follows: "That this conference considers that no new money be provided for the State Lending Departments and that the State Advances Act and its amendments of 1913 be immediately repealed." *Mr. Machin said that a first mortgagee found sometimes that owing to Government priority he was only the fourth mortgagee. The State Advances Department was to-day competing for the business of the farmers and yet it had no money. There was a confusion of interests. The Government departed from recognised principles and then the road to hell was easy. Mr. Paterson said he would be prepared to accept the amendment. There was plenty of private money available for all the legitimate requirements of the borrowing" on land. Mr. Wright said that the Government should confine itself to Government and not to trading. The remit as amended was adopted.