THE RATE OF INTEREST.

Marlborough Express, Volume LII, Issue 83, 12 April 1918, Page 2

THE RATE OF INTEREST.

An important statement regarding interest rates was made by Sir Joseph Ward in reply tp a question by Mr Isitt, who mentioned that a certain insurance company had notified policyholders that it would only renew loans at higher rates. He asked whether Dhis infringed the Moratorium Act. Sir Joseph Ward indicated that, if it is nob at present an infringement of the law, it will soon become so, as regulations giving the Goveramenti power to control rates of interest of all kinds throughout New Zealand were being prepared. This, said the Finance Minister, was absolutely necessary for tho balanc© of the war. Local public bodies would be brought under the Moratorium Act and the provisions of these regulations, and, if the existing legislation was not sufficient for tJie purpose, new legislation would bo introduced. Next session it would probably be necessary to make some adjustment for mutual life insurance companies as to the method of taxation. In the meantime no people would be allowed to force up rates of interest, as the whole policy of the Government was to keep rates down.