FINANCING DEVELOPMENT.

New Zealand Herald, Volume LX, Issue 18397, 12 May 1923, Page 8

FINANCING DEVELOPMENT.

HUGE LOAN ADVOCATED. WORKS AND RURAB CREDIT. BY TELEGRAM.—OWN CORRESPONDENT.] ■ PUTARURU, Friday. The suggestion made by the Putaruru District Development Board some 17 months ago to the Prime Minister that the Government should borr6w, say, £25,000,000 at the reduced rate of interest ruling in London, and utilise it for constructive and reproductive purposes throughout this country is renewed in a. letter forwarded to Mr. Massey this week by the board, reminding him that when, first the matter was referred to him he promised to give it his earnest consideration, but as yet no further word had been received from him in this regard. The board adds that the necessity for cheap money for the primary producers to enable them to put; themselves into a satisfactory financial position and substantially" increase production is still acute, especially in view of the cancellation of the moratorium. An early pronouncement by Mr. Massey as to how the money would be provided to meet this contingency and other needs would therefor© do much to relieve apprehension and give encouragement to the farmers generally, to whose loyal and strenuous work Mr. Massey has" largely accredited the country's recovery from the depression. board also endorses the protest by the Putaruru branch of the Farmers' Union against the incidence of the income tax . militating against the lending of money on land, in that 7s in the £ is charged as income from farm mortgages, as against only 2s 6d and 3s in the case of local body and company debentures. ,