DIVISION OF OPINION

Manawatu Standard, Volume LIII, Issue 20, 20 December 1932, Page 9

DIVISION OF OPINION

BANK INTEREST REDUCTION. CITY COUNCIL’S VIEWPOINT. Dealing with the bank interest rate, the Kaiapoi Borough Council forwarded to the Palmerston North City Council last evening the following resolution for consideration : “That tho Alinister of Finance bo communicated with, requesting that legislation be brought down introducing a compulsory reduction in tho rate of bank interest.” “I havo no two minds about this and never have bad, but at the same time it is a little belated now. However, it will not do any harm to support it,” stated the Atnvor (Air A. E. Mansford), who moved that the council support the resolution. Cr W. B. Cameron seconded the motion. “Are we not a little inconsistent? inquired Cr AV. L. Fitzherbert, who said the council had merely reoeived similar letters from other bodies. The Alayor stated that they had not- been so specific in their reference. Cr Fitzherbert moved an amendment that the letter be formally received, and Cr J. AlcLeod seconded it. Cr J. Hodgens stated that, reading the reports of commercial firms and other organisations, he hardly thought there could be a discordant note in the matter, though he agreed that it was rather belated in reducing the wages of capital. “We are paving a pretty high rate of interest on our overdraft, much of which has been incurred in unemployment relief,” stated Cr G. Tremaine. “If the rate was reduced more money would be available.” Cr Fitzberbert said a reduction in interest bad already been made, and it would bo surprising if another was not made within the next three months. Such matters were better left in the hands of experts. The Alayor: Who are the experts?

Cr Fitzherbert: Leading economists and others. The banks fix their interest charges from day to day, and are receiving very little more than for ordinary flat table mortgages. The motion to support the resolution was carried, Crs AlcLeod and Fitzherbert dissenting.