SALE OF GOLD

Otago Daily Times, Issue 18468, 1 February 1922, Page 5

SALE OF GOLD

RESTRICTIONS DURING THE WAR PERIOD. DISCUSSION IN PARLIAMENT, (Feom Oob Own Correspondent.) WELLINGTON, January 31. Mr T. W. Rhodes, in the House of Representatives to-day brought up the Goldfields and Mines Committee’s report on the petition of Richard Ross, of Thames, and 26 others, praying for compensation for losses sustained through the restriction on the sale of gold in the open market during the war period. The committee recommended that the report bo referred to the Government for favourable consideration. The committee pointed out that during recent years no other industry was so hard hit as gold mining, the commodity being in the interests of the Empire, and at the request of the Imperial Government it was prohibited from export, with the result that a loss, based on the world market price, of approximately 20s per ounce was sustained by the petitioners. Mr J. Horn (Wakatipu) read correspondence on this subject between those interested and the New Zealand Government and the Imperial Government, He said the banks had made a profit of £1 6s Id out of the gold sold, equal to one and a-half million sterling. The banks, in addition, and also the Government, had made a handsome profit out of the extra note issue, and ho suggested that during the next five years there should be a tax on the note issue, so that miners might get back something for the losses they sustained during the war.

Mr Statham strongly supported the plea on behalf of the miners. This, he said, was another glaring instance of tie manner in which the Government playei into the hands of the banks and financial institutions during war time. The Hon. E. P. Leo: It was the National Government that did that. Mr Statham: Well, whatever Government it was. The National Government was just as bad as this one. The Hon. 6. J. Anderson said that enormous difficulties stood in the way of doing anything in this matter. The member for Dunedin Central, in saying that the Government was responsible, was stating what he knew to be untrue. Ho knew that the Imperial Government had given instructions that this should be done. _Ho also knew that the Government of this country had to follow that load. The member for Dunedin Central had not made complaint during the war. Mr Statham: Yes, he did. Mr Anderson: I am sure he did not. Mr Statham: Then you were not listening. Mr Anderson challenged Mr Statham to show from Hansard that he had said anything in the direction indicated. Ho added that ho did not see any practical way out of the difficulty, but he would study the question during the recess. Mr Tsitt blamed the Government for having allowed this thing to happen. He said the Massey Government had a preponderance of the power in that Cabinet, and should take the blame. What ho_ asked had the Board of Trade been doing to allow suoh a state of affairs?

The Hon. W. Nosworthy, replying to Mr Isitt, pointed out that both the Minister of Finance and the Minister of Minos in the National Government were members of the Liberal Party, so the sin in this case, even by the arguments of the hon. member for Christchurch North, had been sheeted home to the Liberals. The Hon. Mr Leo chaffed Mr Isitt. It was curious, he said, that the member for Christchurch North should have complained that the Board of Trade had not seen that the banka did not make this large profit. The Board of Trade was not m existence at the time. —(Laughter.) He further pointed out that the Treasurer in the Ministry of that time was one whom Mr Isitt had always followed, and the Minister of Mines at that time was also a_ pillar of his party. When the National Government had put on the embargo there had not been a word of protest from Mr Isitt. The hon. member had missed his opportunity. He should have attacked the position when the National Cabinet was in existence. However, he (Mr Leo) believed that the real reason for the position that had arisen was the request fnJm the Imperial Government. Several other members _ who _ have gold miners in their constituencies joined in the discussion, and the report was laid on the table of the House.