MR J. MILES VEER ALL AT OHOKA.

Lyttelton Times, Volume LXVIII, Issue 8247, 13 August 1887, Page 3

MR J. MILES VEER ALL AT OHOKA.

On Thursday evening, Mr J, Miles Verrall, a candidate for the Ashley seat, addressed a meeting’ of about 100 electors at the Druids’ Hall, Ohoka. Mr R. Wright was voted to the chair, and asked the audience to give the speaker as attentive and quiet a hearing as had been accorded Mr Pearson the previous evening. Mr Verb all then came forward and spoke as follows He had no doubt that a great many people would be astonished at what they would be pleased to call his presumption in coming forward as a candidate for Parliament. He had served in no public offices and was not at all acquainted with the details of public business, but he had studied the STATE BANK QUESTION, and was convinced that by establishing a State Bank they could not only stop further borrowing and reduce and control the present extortionate rates of interest and costs of mortgage, but that the Colony could then soon pay off all their foreign indebtedness, both public and private. This was rather a large programme, but he was thoroughly convinced of the possibility of carrying it out; and although ho had publicly challenged Sir Julius Vogel and the money-lending fraternity and lawyers to show, if they could, that he was wrong, no one dared to accept his challenge. Finance was the great question of the day in New Zealand, and it was the duty of the people to study, and well and quickly, because if they did not do so the Colonists would soon be the slaves of absentee landlordism, and their children would bo crushed with taxation for the benefit of British capitalists and of New Zealand agents. The New Zealand Government had granted concessions to the foreign banka and the London stockbrokers, which had made them the financial rulers of the Colony, and which gives them the power to keep up the rates of interest. What the Government ought to do was to make themselves the financial rulers of the Colony by establishing a State Bank, which should transact all Government business and have the control of all railways and telegraphs. He was no enemy to the banks, recognising the fact that to injure them would cause injury to the people of New Zealand. But, as he thought the late Mr Macandrew once observed, the credit of the Colony does not depend upon the banka, but the credit of the banks upon that of the Colony; therefore, anything for the good of tho Colony must benefit the banks. He believed that the banks would find a State Bank and State notes of great service and security to themselves. For instance, Mr Ballance, speaking in the House on Sept 4, 1884, respecting the Russian war scare, said: “ There was a fear on the part of tho banks that in the case of a cruiser coming to ono of these ports there would be a run on the banks; and there was a threat made that unless something was done to protect the ports a largo portion of the bullion held against tho note issue would be sent over to Melbourne, and no doubt that threat would have been carried out if the Government had not taken stops to fortify the ports.” Now, if the banks had had State Bank notes they need not have troubled about tho bullion at the back of them, for that would have been the business of the Government, He protested against the Government having to fortify the ports to protect the banka’ gold. He believed the banks would find a State Bank useful to lend them money on mortgage securities, The present high rate of interest in the Colony was making bad security. In conduction with the low prices for produce, the high rates of interest were rapidly deprecating the value of land—which meant that while the foreign indebtedness was increasing the value of assets was decreasing. Many of the farmers knew by bitter experience how their mortgaged farms diminished in value until they became the property of the mortgagees. 0 his was just what was happening to New Zealand as a Colony. The state of affairs was alarming, and ought to be stopped at once, and he knew of no other way of doing it except by a State Bank. Such a bank had been objected to on the ground of its being a species of Protection. He thought it might be advocated upon that very ground. They ought to manufacture their own bank notes, and use their own assets as banking capital, instead of importing English paper money. In England the farmer pays a very low rate of interest on the value of his farm in the shape of rent, and he loses nothing by depreciation in the value of the land. In New Zealand the farmer pays very high rents in the shape of interest and mortgage expenses, and if there is any depreciation in the value of the land, he it is who first suffers. In England the landlord is insured against bad seasons and bad prices by the tenant’s capital. In New Zealand the money lenders are insured not only against the loss of their interest from bad prices and seasons, but also against the depreciation of value in land by the mortgagee’s share in the value of it. In England, land owners had been content with 2 J to 3 per cent interest per annum on the value of their lands in rent. In Now Zealand, mortgagees and their agents rackrent the land by high rates of interest, commission fees and mortgage expenses, coating together from 7£ to 15 per cent per annum. There could be no doubt but that Protection would increase and improve our markets for all kinds of agricultural produce ; but reducing the interest would not only benefit farmers, but it would also make people invest more money in manufacturing industries. While people can get 0,7, and 8 per cent on mortgage they don’t trouble about local industries. In the same way people would not emigrate to New Zealand if they can stop at home and draw dividends of 10 and 20 per cent, or get 5 or G per cent on New Zealand mortgages through the money-lending companies and lawyers of New Zealand. The chief reason why they wanted a State Bank and Protection was that four millions per year is paid out of the Colony for interest on public and private indebtedness, and seven millions last year for imports, while the value of exports only amounted to about seven millions. This meant that they ought not to buy or import so much, or that they ought to sell or export more, because there was a balance of four millions against them. Protection was the only way to restrict the imports, and he believed a State Bank the only way to increase the exports. He did not give the late Government any credit for their proposed Tariff, because Sir Julius Vogel and Sir Robert Stout profess themselves to he neither Freetraders nor Protectionists, and their only object was to increase the revenue. They wanted to increase the revenue so that they may keep in office ; so that they may again make the Colony’s credit good on the London Stock Exchange; so that they may borrow more money. Sir Robert Stout and Sir Julius Vogel profess their willingness to answer questions, but they wilfully evade the subject of a State Bank, and never speak of it unless forced to. In the right of a note issue the Government chives the equivalent of a loan to the banks at 2 per cent interest, the amount of which is only limited by a condition that they have a certain proportion of gold in thoir hands. This gold, however, may really all belong to the banks’ customers, or even, in great part, to the Government itself. Where else, he would like to know, for instance, is the £2,000,000 of Government Savings Bank deposit ? Except about two and and a quarter millions of gold, all the rest of the banks’ capital consisted of promissory notes, securities, and other property. It was undeniable that a State Bank having as much gold or half as much as all the other banks have would be in as strong a position as all the other banka put together. This fact was so clear that no one need wonder that the money-lending fraternity and the lawyers do not attempt to refute it. Silence was their best defence, and a strong one, because it was not easy to get people to study such a question as that of a State Bank. The odd million of j note issue now brought in about £20,000 a year to the Government, but if there were a State Bank the Government could get 4 or 5 per cent on the equivalent of many millions by adding the farmers’ lands to its assets, and by giving bank credit to half or two-thirds the value of those lauds.

Mr Gladstone had said in. a speech of his: "Ireland might think fit to pass a law providing for the extinction of private issues in Ireland, and that no bank notes should bo issued in Ireland except under the authority and for the advantage of the State. I own it is my opinion that Ireland would do an extremely sensible thing if she passed such a law.” These words of Mr Gladstone surely applied to New Zealand just as well as to Ireland. Sir Julius Vogel and Sir Robert Stout had blocked out the State Bank question by other business, and appeared to be unwilling to do anything that would conflict with the interests of the great moneylending Companies and lawyers. They were not only antagonistic to the bank, but to granting loans to farmers at low rates of interest. The reason why Mr Garrick and Sir Robert Stout, who deal in money, were not in favour of a State Bank was that they were afraid of its " crushing out private enterprise” in the moneylending line. Mr Fisher in Parliament last May produced figures showing that the public debt of the Colony had increased since March 81, 1883, by over 7| millions; yet, in spite of this flow of foreign capital, the Colony has been in a fearful state of depression during the past four years. Mr Fisher also pointed out that it took id 50,000 more than all the Customs duties and Property-tax to pay interest on the public debt. He (Mr Verrall) would like to know if there was not danger in such a state of affairs- The Stout-Vogel Government had not only given away our colonial promissory notes on debentures, but they had also given away land to the Midland Railway Company worth 1} millions, but which the Company calculates will be worth millions as soon as the railway is made. Probably it will be worth five millions, as the concessions granted to the Manawatu Railway Company, valued at £86,000, were now considered to be worth £500,000, In addition to this large area, the Company also received 28 acres of the foreshore, valued at £35,000. This was the way the guardians of their children’s public estate had been financing. (Applause.) The public debt of the Colony was bad enough, bat its effects were nothing to be compared to the effects of the private indebtedness. Less tlian one penny in the £ on property above £SOO could not be said to be a crushing tax, and, in, spite of the Customs duties, clothing, manufactured necessaries, and luxuries were as cheap now in New Zealand as they were in England eight years ago, when he was there; hut 7A to 15 per cent per annum in interest and mortgage expenses was a tax of Is 6d to 3s in the £ onthe farming capital of the Colony. A great deal of abhorrence had been expressed against the Stout-Vogel Government for proposing a graduated Property-tax. The opponents said it would discourage thrift. He thought that the graduated interest and mortgage expenses tax, as preached by money-lenders and lawyers was more likely not only to discourage thrift, but to have been a great cause of the present bad state of affairs. (Applause.) This tax is graduated the wrong way—the poorer the borrower, the higher rate of interest and mortgage expenses he has to pay, and vice versd. (Applause.) Our Government gives the equivalent of a loan to the hanks at 2 per cent per annum, but if a poor man gets under the heel of the money-lending fraternity, the Government comes down upon him with the most crushing and cruel charges for poundage, summonses, and bailiffs. He had had a splendid experience with the Property-tax Department. He refused to pay Property-tax due Nov., 1885, because, at the time, he could not have raised £2OO by selling all that he had. He received notice after notice, and at last was summoned, but actually no one appeared against him. He had no doubt but that the Government had extorted a great deal of Property-tax unjustly from men whose hands were tied, and who dared not come before the public. He thought there was room for retrenchment in this Department. There was another tax upon land which graduated the wrong way. He referred to the cost of LAND TRANSFER. This question affected a large number of people in the Colony, especially the hardworking and industrious men. Mr Taylor put the question in the House the session before last, whether it was the intention of Government to amend the Land Transfer Act, in the direction of reducing the fees allowed to brokers, and fixing solicitors’ fees. He (Mr Taylor) hoped that the Government would move in the direction of fixing the law that the charges for , a transfer should not exceed £1 to include all the legal padding. Sir Robert Stout, of course, replied that it was not his intention to introduce such a Bill that year, and nothing since has been done. He (Mr Verrall) was in favour of a measure similar to that suggested by Mr Taylor, and would be glad to see it carried next session. In Jersey it appeared, from a book published by Arthur Arnold entitled " Free Land,” a man can sell his land and settle the whole business in a day, and that in the purchase of property worth £SOO all costs would not exceed £l. He (Mr Verrall) would like to know why the Jersey system should not be copied hero. He thought that if there were fewer lawyers in Parliament it would be the better for the country, and it was because the Ashley district was threatened with two lawyer candidates he had come forward. Of the six Christchurch representatives last session three were lawyers. He did not know how manyflawyers there were altogether in the last Parliament, but if half or a quarter were so it would account well for the far worse than barren session. [A voice: " They are a lot of rogues.”] (Laughter.) In the last English Parliament there were 110 barristers and 23 solicitors, and this he thought truly accounted for the present condition of England and Ireland. If lawyers were good Parliament men, that Parliament ought to have thoroughly reformed all the laud laws and pacified Ireland, He thought Judges should be paid higher salaries than they now received. His next subject was EDUCATION. He was in favour of referring this question to a Committee to investigate before the system was interfered with. He did not personally think it necessary for children to be sent to school before reaching their seventh year, but was of opinion that the parents should be loft to judge when their children were fit to attend. There was too much spent on secondary education, and those parents who could afford it should be made to pay full price for the higher education of their children; and no pupils except those of great natural ability, whose parents could not afford to educate them, should he educated at the public expense. As to the question of DEFENCE, he would urgently advocate that guns, powder, and men should always be ready. He would like New Zealand men to be noted as first-class rifle shots, like the Boers of South Africa, and as the old English were noted as bowmen. He thought it was quite wrong to have dressed the Volunteers in scarlet, because New Zealand grey or brown tweed would be more comfortable, and, what is important in war, a far worse target for the enemy. He should also like to see them wearing helmets in place of the little caps which now form part of the uniform. Now he came to his last subject, that of PROTECTION. There were some taxes which not only benefited the revenue, but also those who pay them. For instance, if there were a good stiff tax upon all stallions, the owners of good stallions would profit by it, as there would not be so many inferior animals to compete with, and the New Zealand breeds of horses would be improved immensely, which * is much required. (Applause.) There wore a good many people in New Zealand who called themselves Freetraders, but he did not think many of them had any right to the name; as he believed very few of them would wish to reduce the present protective duties. New South Wales calls herself a Freetrade Colony, but she had no right to do so, seeing she protects her dairy industries. This was not done to injure New Zealand, but for the benefit of her own farmers ; and he thought it was very wise of New South Wales to do so. England is the great

example of Freetrade, and he thought the results were not likely to lead to imitation. Freetrade was just a mushroom policy, which had gone up like a rocket and was now coming down like a stick. England had hunted after a shadow called cheapness, and in the chase they had lost an enormous amount of their substance. Freetrade has been like a blight upon English wheat fields, for the production of wheat in England had decreased by nearly a half. Freetrade had been like a plague amongst English cattle, sheep, and horses, because the less wheat and, therefore, straw grown the fewer stock can an English farmer keep; and also because frozen meat from all parts of the world gluts the English market, and the low prices resulting, take away from the farmer both the desire and the means of increasing or improving his flocks and herds. When farming was prosperous, British landlords, farmers, and labourers were the very best customers of English manufacturers, but now as landlords get less rent, sometimes none; farmers get no profit; and labourers less wages and employment, it naturally followed that the state of trade in Great Britain is very bad. And not only this, but foreign manufactures were beating English manufactures not only in the world's market but in British markets. So, although the necessaries of life are cheap enough in England, what is necessary to purchase them, viz,, money, is far harder to get than when corn and meat were far cheaper. If England expected the Colonies to grow wheat for her in competition with such people as the Hindoos, he thought it would be good to give her a lesson in Protection by putting heavier duties on her imports. He thought they should double their protective duties, chiefly to decrease the imports by onehalf, He did not advocate doubling the duties on everything, but he thought duties of 100 per cent ail valorem on many luxuries would hurt no one. He would like to see 50 or 100 per cent on all foreign pickles and jams, and the same again on stout and ale. He thought it would be a benefit to the Colony if 25 per cent were added to the duty on foreign clothing. It would not necessarily follow that the price of the Colonial manufactures would rise by an increase of duty. He trusted that the Colonial manufacturers would not defeat the chief object of the protective duties by raising the price of their goods. There were a great many small industries that would spring up in the Colony if the Customs duties were increased, and the interest rates decreased. He was glad to see that Sir Julius Vogel had given permission for the hse of a distillery for scent manufacture. He did not think Sir Julius Vogel's highest estimates of the real wealth of the Colony were ever exaggerated, but they must not let the wealth pass into the hands of foreign companies. The real capital of New Zealand was land and labour, and they ought to keep the land and attract more labour, and draw capital out of the land by producing more raw materials, and manufacturing and exporting them, instead of borrowing paper money from England. In

CONCLUSION, he was no enemy to the money-lending fraternity and lawyers beyond wishing to reduce the rates of interest and the costs of mortgage, land transfer, and general law expenses. He believed in what was called sanctity of property, but he did not recognise any sanctity about money. He wished the gentlemen referred to would let the public have the benefit of their financial knowledge, and point out the evils of a State Bank if there were any. He wished that the farmers would recognise that the Colony wants not only low rates of interest, but good wages, and that a State Bank would give the former, and Protection the latter. (Applause.) That was all he had to say to them. He had no Committee to help him in his candidature, but ho should do his best to get in, and if he failed he should not take it much to heart. He heartily thanked them for the attention they had given him, and would be pleased to reply to any questions they might think fit to put to him. (Applause.) In reply to QUESTIONS, he said that ho would not favour a reduction in the salaries of school teachers. They were a hard worked class and not too well paid. He believed in good wages and good salaries all round. (Applause.) He was not in favour of a Stout-Vogel, Grey, Atkinson, Eolleston, or Hall Government. They had all borrowed paper money and refused to face the State Bank question. He knew one of the five parties would get into power but he did not care which. He thought that if a man came forward and advocated the right things to benefit the country he should be supported independently of parties. (Applause.) He did not like the present bankruptcy law at all, and thought it might be altered with advantage. Mr Power moved a hearty vote of thanks to Mr Verrall for his address. Mr Kelcher seconded, and the motion was unanimously carried with applause. Mr Veeeall expressed his gratitude for the very good hearing the meeting had accorded him, and the proceedings closed with a vote of thanks to the Chairman.