STATE TRADING

Greymouth Evening Star, 28 October 1932, Page 2

STATE TRADING

A MEMBER’S CRITICISM

[special to “stab.”]

WELLINGTON, October 27

The contention that State interference in business was having a detrimental effect on the economic condition of the Dominion was made by Mr Campbell, to-night, in the House. Mr Campbell said that, as the result of State interference, State enterprise and State tinkering, the money was being driven out of industry, and that was the reason for the rise in bank deposits. The banks were the only safe place for the investment of money. “To my mind, the whole of Government enterpjrlse in various trading has had a disastrous effect. Even in probably the most profitable one, the State Advances Department, there was no money available at the present time. Not a cent can be borrowed by anybody from State Advances and there is no money available from any other source. Before the State Advances started, the British companies were prepared to lend money at a low rate, as low as 4 per cent in some cases. I had some of it myself. As soon as the State Advances started these men went opt. They objected to competition from the State. The result is that we have to depend on one institution for money, and when that office gets into difficulties, we have no one to fall back on.. We are left high and dry.’’