BATES OF INTEREST

New Zealand Herald, Volume LXIX, Issue 21295, 23 September 1932, Page 10

BATES OF INTEREST

NO FURTHER INTERFERENCE ATTITUDE OF GOVERNMENT POWERS UNDER LEGISLATION [by telegraph—special reporter] WELLINGTON. Thursday Tho Government has no intention of interfering further with tho rates of interest in the Dominion at present, according to a statement; made this evening by the Prime Minister, tho Rt. Hon. G. W. Forbes. The attention of Mr. Forbes was drawn to the fact that in some parts of New Zealand the investing public was. again becoming reluctant, to take np local body debenture issues since they feared a further state of interference with interest rates. " The Government is entirely opposed to high rates," Said Mr. Forbes, " and we are naturally interested in seeing that rates of interest are kept as low as pos<sible and .within the capacity of people who have to carry many 'other burdens at present. However, there is no proposal to make a further statutory reduction of rates." Under the provisions of tho National' Expenditure Adjustment Act, the Govern ment has taken power until March 31. 1935, to fix by Order-in-Council the maximum rates of interest that may be paid on deposits with savings banks, building and investment societies or trading companies. The proclamation may fix different rates for different classes of deposits and apply them to present or future deposits or both. The object of the provision was to bring deposits within the scheme for an all-round reduction in interest rates. Under the Act, local body debentures were liable to a special stamp duty of 10 per 'cent.