LOANS AND COMPULSION

Nelson Evening Mail, Volume LIV, 22 March 1921, Page 4

LOANS AND COMPULSION

STATEMENT BY THE PREMIER Th© Prinje Minister was asked by Mr Harris if, in view of the Prune Minister’s statement, it was not the intention of the Government to apply the compulsory clauses fpr the Discharged Soldiers’ Settlement Loan, did he ,not think injustice had been done those, citizens who had ma.de financial sacrifices in order to subscribe to the loan. ■ '...... The Prime Minister: “I never said the compulsory elapses wouldpnob be applied. You, can tell your friers in Auckland .oi that ” He read the Hansard of his reference to the loan,'.where it, was stated be did not-say that,the,Government would not ask for the balance, of the loan later on. He did intend to ask for the balance. There , extreme scarcity of money just now , and there had just been an exceptionally heavy collection of income tax. 4/ was nob going to cause undue hardship if ho could avoid it. Most of the people who could subscribe to.the loan'did so at once and those *lO did nob simply could not get tie money. There might be people ,'Vho had not paid. Mho were able. Where thev had gone about boasting they had not paid they 'would be compelled. There was, however, not tlio same ur.rency for the balance of money, and it would be asked for when the time was more opportune. 1 RATE disinterest

Heading k circular letter from ,a southern produce and stock firm, .Mr McCombs asked if the Government would take steps to prevent the “unmitigated exploitation” of small fanners of the country, who had quite enough troubles now, without having the rate of interest increased. The letter quoted advised that as the banks had put up the rate of interest, the firm in question had no alternative but to charge 7i per cent on overdraft accounts. Mr Mo* Combs wished, to know if the Government would control tho banks and lending institutions. The Prime Minister said the Government had done everything po'ssi. bio to keen down the rate of interest. Mr McCombs; “You can control the banks.” The Prime Minister said that if they said to the banks they must not increase the rates of interest, the result would be that the small farmers would be unable to get any money at all. If the Government had not taken the stops it had to keep down the rate, he had no doubt that interest would have

been at least 10 per cent by this time.. When the whole story was told, it would be found the Government had done far more than most people gave it credit for. Mr McCombs said the Government could control the hanks by establishing a State Bank. Mr Massey resumed his_ seat with an exclamation which signified that he did not fool inclined to argue about such proposals at this time. RACE PERMITS A promise made last session that no extra racing permits would he granted, exceed, hunt clubs, without Parliament having the right to consider the report of the Racing Commission, was recalled bv Mr Isitt in the House. Tlie lion. Downie Stewart, Minister of Internal Affairs, said there would bo uo difficulty in giving effect to the promise made. Though the racing season started in August, there were rot many meetings in the early spring. .Parliament would assemble about September, ami if the Racing Commission had allocated any extra days for the early spring they would have to lie bold up in some way till Parliament had an opportunity of passing an opinion on the report of the Commission. The report of the Commission would nob be dealt with by the Minister of Internal Affairs, but by Cabinet in the form of an Order-in-Coun-cfl. The Prime Minister assured Mr Isitt that it was a promise he himself bad made and it- would be kept. SHOPS AND OFFICES ACT When the Shops ami Offices Amend meiit Bill was before the Legislative Council, an amendment was .introduced by the Leader for the purpose j of making it clear that only a shopkeeper who employs no assistants, other than members of bis family, is entitled to apply for exemption from the early closing law. A further amendment substituted the- Magistrate’s Court for the Arbitration Court, as the tribunal to which application for exemption must be made. The amendments were agreed to by the House, although Mr- Holland protested that the removal of the matter to the Magistrate's Court would mean that unions would not have the right to lie officially represented.