INTEREST RATES

Grey River Argus, 10 November 1931, Page 8

INTEREST RATES

INDEPENDENTS’ VIEWS. WELLINGTON, November G. Mr C. A. Wilkinson (Independent member for Egmont) in a statement declared that the amazing suggestion has been made that the Independent members of Parliament —Messrs Wilkinson, H. M. Rush worth, J. S. Fletch-

er, J. T. Hogan, and G. C. Black—arc not ju v iiiiied in their opposition to the Forbes-Coates Government. He states that they are directing as forcibly as possible public attention to the Government’s failure |io envisage certain vitally important factors in the national life which demand immedia'ie attention. “The problem of interest rates in our opinion,’’ says Mr Wilkinson, “is the most vital factor affecting the public welfare. The doctrine of equality of sacrifice demands that the receivers of interest, etc., should be brought into" line with the general decrease in the values of commodities and services. The Minisiter of Finance (Mr W. D. Stewart.) in his Supplementary Budget deals wi-h this question, and be ulitimately rejected the suggestion of a reduction in interest raltcs in favour of

a system of taxation upon receipts from interest, which we consider will result in interest rates being made higher Wo on the other hand, favour a “cut of 20 per cent, on interest i’ates by legal enactment, and a corresponding cut m rents and a complete review of our banking currency system. The Government’s proposal to amend the Mortgagors’ Relief Act will include provision to protect the mortgagor, but the talus of proof will be on the borrower Vshow his inability to pay. This means ‘X mortgagors will have to face court P r \edings with the attendant costs ant l' *)ss. The Independent; members, on thX o ther hand, consider Jth'at the onus o.u 3roo f should be.. on 'the mortgagee 'dprove the of the;mortgagor before drastic action is permitted. 1 #