RATE OF INTEREST

Greymouth Evening Star, 22 June 1928, Page 6

RATE OF INTEREST

MR COATES’S COMMENT.

(Per Press Association.)

PALMERSTON NORTH, June 22. “The country has gone through a difficult period,; but it is not the only country in the British Empire that has gone through a trying time,’’ said Mr Coates at the Manawatu A. and P Association’s annual smoke-oh last night. “Moreover, deflation in world prices tells its own story. In every country there has been a thorough overhaul of the position, and it is realised that co-operation is necessary between all classes. The Dominion is passing' satisfactorily through its present difficulties, as proved by facts and figures, and for the life of me I cannot understand anyone who attempts to disprove that the country is coming through with flying colours. Referring to the improvement in banking figures, the Premier said it could be seen that the country was returning to a normal state. Some might ask why the Government should not bring down the bank rate of interest, but after all the banks were commercial institutions, and it would be a bad day for the country if even the Government had power to regulate commercial matters, particularly banking. The country’s credit was satisfactory. ’The Dominion had got the first loan for many years at per cent. That indicated the interest rate should not rise, but have a downward tendency. ]t was important that the rate of interest should be at the lowest possible cost, particularly for developing the country.”