LENDING BY STATE

New Zealand Herald, Volume LXIX, Issue 21326, 29 October 1932, Page 9

LENDING BY STATE

CRITICISM OF ACTIVITIES WITHDRAWAL REQUESTED "AMPLE PRIVATE MONEY" [BY TELEWRAPH—PRESS ASSOCIATION] DUXEDIN. Friday The activities of State lending departments were discussed at the conference of the Associated Chambers of Commerce today. Mr. Stronacli Pal.erson moved a remit from the executive asking the Government to withdraw from lending on land and property and leave it to private enterprise. He said that State lending had had disastrous results to the taxpayers. The asking of a moratorium for the Public Trustee for local bodies sinking funds indicated the position into which the country's finances had got. Mr. A. F. Wright said they should obtain full informatiou of tho position regarding State lending. Mr. F. H. Bass questioned whether they could get sufficient money from private enterprise. Mr. P. 0. Smellie said that at, the end of March, 1932, interest owing to the State Advances Department came to £940,000, and he doubted if it could be recovered. Instead of losses being placed on bondholders they were being transferred to the whole body of taxpayers. He saw no reason why the State Advances Department should not ultimately be liquidated. Mr. Smellie moved ari addition to the remit as follows"That this conference considers that no new money be provided for the State lending departments and that the State Advances Act and its Amendments of 1913 be immediately repealed." Mr. W. Machin said that the State Advances Department was to-day competing for the business of farmers, and yet it had no money. There was a, confusion of interests. The Government departed from recognised principles and then the road to trouble was easy. Mr. Paterson said he would be prepared to accept the amendment. There was plenty of private money available for all the legitimate requirements of borrowing on land. Mr. Wright said the Government should confine itself to government, not to trading. The remit as amended was adopted.