RATES OF INTEREST

Otago Daily Times, Issue 23895, 24 August 1939, Page 7

RATES OF INTEREST

REPLY TO CRITICISM MERELY "ALLOWED TO MOVE" GOVERNMENT KEEPING FIRM HOLD (From Our Parliamentary Reporter) WELLINGTON, Aug. 23. The statement by the Leader of the Opposition (Mr Adam Hamilton) that it was the previous Government which had brought the interest rate down, and that the Labour Government had done nothing but raise it or let it rise was challenged by the Acting Minister of Finance (Mr P. Fraser) when replying to the debate on the Financial Statement in the House of Representatives to-night. Mr Fraser said the Government had allowed the ratevto move, but was still keeping a firm grip on it. The statement by the Leadei of the Opposition was an exaggeration. Mr Fraser said. Mr W. J. Poison (Opposition. Stratford): Is that not true? Mr A. E. Jull (Opposition. Waipawa): Perfectly true. /,. Mr Fraser: Let Us see what truth there-is in it. The Government, it is true, allowed the rate of interest to move, but is still keeping a firm grip on it. . Mr Poison: That is to say. allowed it to move upward. Mr Fraser; Has the yield on Government securities gone up? Mr Poison: Interest rates have gone up. The Government borrowed internally at 4| per cent, and set the pace for the rest of the country. Mr Fraser: Where has the pace been followed? We want at least a sense of proportion to be kept, and we do not want the exaggerations of the honourable gentleman who has not stated the facts. Referring to the statement on unemployment by Mr Hamilton, the Minister repeated that there was practically no unemployment in the Dominion to-day. Unemployment was down to the , normal for the country in the years preceding the depression, and there was nothing abnormal about the position. No sensible person would say that because a man was employed on public works or was carrying out other useful work he had to be included in the statistics as unemployed. Mr Fraser said that at March 11 there were only 726 men who could be called unemployed. There might be a few more now, because of the termination of seasonal occupations. The Government accepted as a State duty the task of providing work for those who were out of work.