THE RATE OF INTEREST

Otago Daily Times, Issue 18720, 25 November 1922, Page 18

THE RATE OF INTEREST

THE BANKS CRITICISED. (From Cue Own Correspondent.) CHRISTCHURCH, November 22. Notice of tho following motion was given by Mr D. Bates at the last meeting of the North Canterbury Executive of the Farmers’ Union: “In view of the continued and unwarranted high rate of interest charged by the banking institutions tho legislature bo asked to explore the avenues suggested by economists, to counteract and ameliorate the distress caused by the oppressive rates of interest, by. the restriction of credit, such avenues to include (1) the guillotining of the gold sovereign, (2) tho stabilising £ sterling on a standard of value, (3) tho establishment of Stale credits and as a corollary to compel banking institutions to redeem in gold their promissory bank notes.” At a meeting of the executive to-day Mr Bates said he wished to hold his motion over till after tho elections. His motion dealt with deflation, and in moving it he would have to criticise Mr Massey severely, and ho did not want to embarrass him just now. Mr M. G. Sheat: He can stand it. Mr Bates, continuing, said they owed a great deal to Mr Massey. Ho could never forget tho courage Mr Massey showed in the face of much criticism when'the farmers were organising to market their meat under tho best conditions. Mr Massey was a man of courage. He recognised tho importance of tho farming industries, and the farmers had a lot for which to thank him. In moving that his motion be held over until after tho elections, Mr Bates also moved: “That in the meantime a copy of the motion bo sent to the chairman for tho Committee of Associated Banks asking for his committee’s criticism, and further asking him if it were not possible in tho interests of tho country to reduce tho rate of interest on the overdrafts of farmers by at least one per cent., and if such be possible to reduce the rate forthwith.” 'The meeting agreed to Mr Bates’s suggestions.