RATES OF INTEREST.

Greymouth Evening Star, 11 April 1918, Page 2

RATES OF INTEREST.

STRICT STATE CONTROL. [By Electric Telegraph—Special to "Star. WELLINGTON, This Day. A question by Mr. L. M. Isitt regarding an insurance company putting up the rate of interest on expiring loans to policy holders, elicited an important statement from Sir Joseph Ward yesterday regarding the control over interest rates. Mr. Isitt mentioned that a company had notified policy holders that it would duly renew loans at higher rates, he asked if this enfringed on the Moratorium Act. .. Sir Joseph Ward indicated, in reply, that if it is not at present an infringement of the law it will soon become so, as regulations giving the Government power to control rates of interest on all bonds throughout New Zealand were being prepared. (Hear, hear.) This, said" the Finance Minister, was absolutely necessary. For the remainder of the war local public bodies would be brought under the Moratorium Act and the provisions of these regulations, and if the legislation was not sufficient for the purpose it would be introduced. Mr. J. V. Brown: Will it he retrospective? Sir Joseph Ward :—We cannot make retrospective legislation. We will probably next session require to make some adjustment for the mutual life insurance companies as to method of taxation. In the meantime no people will be allowed to force up rates of interest. It is the whole policy of the Government to keep rates down.