PARLIAMENT.

Hawera Star, Volume XLVIII, 11 July 1924, Page 6

PARLIAMENT.

STATE BANK BILL. ADDRESS-IN-REPLY. DIFFICULTIES OF FARAIERS

(BY TELEGRAPH —PRESS ASfJCIATXONA WELLINGTON, July 10. The House met at 2.30 p.m. Air TV. A. Veiteh (Wanganui) gave, notice of his intention to introduce a State Bank Bill and a Painters’ and Paperhangers’ Health Protection Bill. Replying to the Hon. D. Buddo (Kaiapoi),” Mr. Massey said the Government was going to take no risks of introducing foot and mouth disease by allowing importations of produce from California. Replying to the Hon. A. J. Hanan (Invercargill), Air. Massey said he did not think we had much reason to complain so far as we had gone in connection with the funding of our war debt to Britain. He was aware, however, that since the present terms had been agreed upon Britain had been able to make a better arrangement for funding its war debt to America, and he felt very confident that the matter only had to be represented to the British Premier and the Chancellor of the Exchequer, when they would at once do what was necessary to make matters more equitable to New Zealand. The debate on the Address-in-Reply was continued. Air. W. D. Lysnar (Gisborne) said the moratorium was not protecting had securities, hut it was the good securities that were in danger. The first thing the Premier should do was to redeem his pi'omise of last year and put the same income tax on mortgages as upon debentures. That was essential to make mortgages on land attractive. He was opposed to a State Bank, but advocated a. land mortgage bank if there could be no further extension of the Advances Department. Mr, J. Lye (Waikato), dealing with the position of farmers, said the difficulties of farmers were sometimes attributed to high land values, but he considered high mortgage rates and high bank rates were what- was killing production and causing the abandonment of farms and extensive bankruptcies. In two years and four months to April, 1924, there had been 426 bankruptcies amongst farmers. For every man who surrendered his farm there were a dozen who walked off and were driven back to the towns. The Reform administration had tended in that direction.

Air. J. A. Lee (Auckland East) criticised the land purchases made by the Government for soldiers’ settlements. He maintained that independent valuers had reported in many cases that Tie capital values were too high, and the Government should swallow its dignity and acknowledge that they had made mistakes and write down the valuations to a. price at which it would nay soldier settlers to hold their land. Mr. V. H. Potter (Roskill) defended Tie Reform Party against the labour ■mputations of disloyalty because the name of the Rev. Howard Elliott was associated with them. There was no more loyal man than the Rev. Howard Elliott, but no one could say that of Tie Labour Party. In support of this statement, he quoted from the Maorilarnl Worker, which stated, that if Ire'and obtained her freedom it would mean the break up of" the Ehnpire, which would be a. good thing for the world and an inspiration to Labour, flie Labour Party had done nothing to get soldiers for the Empire in the hour if peril, but in the House members of Tiat party were falling over themselves fcoi give concessions to soldiers in order to get their votes. Air. # G. AY. Forbes (Hurunui), dismissing the position of the, parties in the- House and the country, said he did' iot favour organising a party to fight Labour. What they wanted was a party which would help Labour. He declared the Government had failed to provide sufficient money to meet all the requirements of., the farmer, who had been grossly deceived by the promises of the Premier. He said the Legislative Council was being used for party purposes, denouncing one of the recent appointments as being made to. clear the field for a member who was returned as a Liberal and who had since been of great service to the Government. The recent political history of the North Auc-ldand district was most unsavoury and the Premier had sailed pretty close, to the wind in the wav he bad used the Legislative Council to get rid of inconvenient candidates. Air. 0. Hawken (Egniont) said it was not true that this Government had no sympathy with the working man. As a matter of fact the position of the working classes was better to-day than was the case in 1914. He was confident no worker would go back to the conditions of ten years ago, and the Reform Government had been the Government all the time. He had noticed with a good deal of satisfaction that during the debate the insistent cry for the housing of the people had practically ceased, which he took as a sign that the Government had successfully coped with the problem. Now a new cry had arisen and this was a demand for money to finance settlers. This, he thought, would be more difficult to overcome than either buying land for soldiers or housing the jieople. He favoured the Government’s proposal in connection with the moratorium. Air. Hawken said be did not believe the number of persons sheltering under the moratorium could be very great, nor did lie think the amount could be very large, because most of those whose mortgages could be paid off had already got money from the Advances Department. What he was afraid of was that the money so lent had gone to the mortgagees, who had not reinvested it in land, but who had put the money into local body debentures. Ibis was being done not because of taxation, lint because local bodies wore ottering higher interest than farmers eould offer. If local bodies were to continue as serious competitors with farmers then the, position of the latter would heroine serious. Afore money would have to he borrowed to help the I armors, but this was not free from difficulty, because there was the exchange problem, which might make the money so borrowed very dear money indeed. The House rose at 11.40 p.m till 2.30 p.m. to-morrow.