A REPLY BY THE PRIME MINISTER.

Grey River Argus, 19 April 1909, Page 3

A REPLY BY THE PRIME MINISTER.

WELLINGTON, April 13. Speaking at the Chamber of Commerce dinner to visiting delegates to the. conference to-night, Sir Joseph Ward contradicted the statements made by Mr Kettle during to-day's discussion on the effects of the mortgajre and graduated land taxes. A statement has been made, Sir Joseph said, that the Government was responsible for the stringency in the money market by absorbing local money During the last twelve months the Government had only borrowed from the nublic of New Zealand between £90,---000 and £100,000. That had been unsolicited, while in the meantime the Government had brought a very large sum of outside money to the* country. The sum they had brought in and circulated ran into several hundreds of thousands of pounds. As to the statement regardrng-thc'Tiifficulty of obtaining money in New Zealand through Government institutions, he reirretted it had been made. During the last twelve months the Advancements to Settlers Department had lent out in cash nearly two millions, though he had not the actual figures. At th 2 same time the Government had lent £250,000 to local bodies, making a total of considerably over £2,000,---006. Then it had been said that the graduated tax was imposed upon buildings, but he wanted to say that there was no building in any part of New Zealand upon which the taxation was levied by the Government. Another statement he wished to contradict was that on account of the operation of the mortgage tax money was not coming into New Zealand. As a matter of fact he had within the last six weeks refused Australian money, amounting in one sum to £250,000, which was offered for investment in New Zealand at 4 per cent. In addition, during the coming year a sum of £233,000 had been arranged for in Australia for investment in New Zealand at 4 per- cent.