CAN IT BE NOW-POLITICAL?

Evening Post, Volume CXIX, Issue 32, 7 February 1935, Page 10

CAN IT BE NOW-POLITICAL?

Several interesting points emerge from the report submitted to the Canterbury Chamber of Commerce of discussions with the Minister of Finance and his advisers on the Mortgage Corporation proposals. Regarding the rehabilitation proposals the committee which met the Minister had no hesitation in suggesting that the Minister had hot had time to digest the proposals put out in his name, that those who had advised him had a very insufficient knowledge of the subject, and that the subject would have to be given much more research before it would be of real assistance to the farmer, and of value to the financial structure of New Zealand. The unsatisfactory answers given to questions regarding the 20 per cent, gift to mortgagors are proof of the superficiality,of the consideration. No doubt more thought has been given to the subject of control. The Minister, according to the Chamber of Commerce report, was definite on this point: The Corporation would be absolutely free from political control. He gave analogies—the Reserve Bank, the Bank of New Zealand, and the Railways Board. Yet we doubt if the Minister, though he may sincerely desire non-political control, has considered whether the Government can assure this. Even his analogies suggest a short memory. Has he forgotten the attempts made to induce Mr. Downie Stewart, as Minister of Finance, to bring pressure to bear on the Government-appointed directors of the Bank of New Zealand, which attempts Mr. Stewart firmly resisted? Has he forgotten the recommendation of the Monetary Committee that the State should exercise to the fullest extent its power .of appointment to the directorate of the Bank of 'New Zealand to ensure that the primary object of the bank's policy -will in future be to promote the national wellbeing of New Zealand? For example, the rate for advances could be determined by the policy of the Bank of New Zealand? If this means anything at all, it means that the Government should tell its directors what the rate for advances should be and by exercising "to the fullest extent its power of appointment" should see that they obeyed instructions and accepted the view of the political party in power as to what was for the national well-being. Has the Minister even forgotten his own frank statement that until the exchange rate was fixed by statute without a guarantee the Reserve Bank's decisions on the rate could not possibly be unbiased? If, however, the Minister has forgotten these things he has only to read the report of yesterday's meeting of the Dominion executive of the Farmers' Union to learn what is intended by some of those who have been demanding" mortgage interference. The president of the union (Mr. W. J. Poison, M.P.) placed two points before the meeting: Firstly, "they wanted interest down to bedrock and they should insist upon that"; and, secondly, they should ask for co-operative control. If they could not get that, their second, string: should be State control, and they should make it clear that on no account were they agreeable to joint stock control. The Hon. F. Waite was of opinion that "the pamphlet issued by Mr. Coates did definitely say that there would be Government control." He himself would never agree to shareholder control. "Eventually, he thought, the Corporation would be _ Government controlled." These opinions reveal that, in spite of what Mr. Coates has said about absolute freedom from political control, some of his own supporters either think they have political control now, or they are certain to get it. What would be the purpose of political control? The president of the Farmers' Union answered that question seven months ago when he declared himself for high land values. "Reduce interest and land values would not matter." Can anyone doubt that, with mortgagors solidly mobilised, the political pressure would be accentuated as the commercial and financial committee has pointed out, and directed to the maintenance of land values, heavy borrowing ("ffigh values meant something. to pledge," said. Mr. Poison), and renewal of that speculation which has contributed so much to the difficulties of farmers?