THE BANK’S OFFER

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 5

THE BANK’S OFFER

LUKEWARM RECEPTION OBJEJCTIONS RAISED ACCEPTANCE NOT LIKELY (Parliamentary Reporter.) WELLINGTON, this day. Although no decision has been leached by the Cabinet oil the Bank of New Zealand’s local rate and laud tax relief proposal, the opinion in informed lobby circles is tiiat for quite a variety of reasons the proposition will not prove attractive, and the Ministry will be thrown back on il§ own resources to evolye a more practicable alternative that will serve the dual purpose of affording permanent relief, to the primary producer and ensuring the general circulation of money. Arguments advanced against the bank’s schemes are that it is too palliative in character; that there would be no discrimination in the distribution of relief proposed; that there would be a danger of the additional funds finding their way back too rapidly to financial ‘‘freezing chamber;" and that the inroads in comparison with possible benefits to one section only of the community would be too heavy on the taxable capacity of the country. “REASONABLE’ ’ IN TEREST No announcement lias been made as to the rate of interest at which the bank ftvould make £2,000,000 available, and in even a preliminary consideration of the possible cost of this proposed financial accommodation, the Cabinet could hardly ignore the recent hint of the Prime Minister that emergency measures may be taken early next year to deal with the question of interest. The bank has offered the loan at “a reasonable rate of interest," but the Ministerial view as to what constitutes “a reasonable rate” may not be in sympathy with that of the general manager of the Bank of New Zealand. It has been suggested in some quarters that no progress will be made until more notice is taken of the general currency question, and it is said that one Minister, at all events, believes that the time is approaching when more than passing thought will have to be given to the possibilities of establishing an internal currency system. Ih view of the revolutionary nature of this proposal, however, it is extremely, unlikely that the Ministry will take the point up seriously, although it is known that it has received individual consideration at different times While the Cabinet is devoting its tnno to the plight of the farmer, there are city members who are wondering why the same measure of consideration is not given to the straits of workless and the alarming development of the unemployment problem. . “Is that all!" said one. city Coalitionist when acouainted with the bank’s offer to the Government. “What about the unemployed ? There is nothing for them. Well, that is not good enough for me, and I don’t care who knows it.