GOVERNMENT LOANS
BAN ON SPECULATION A DIFFICULT PROBLEM RESTRICTION ON SELLING (Parliamentary Reporter.) WELLINGTON', this day. Emphatic warnings by Ministers that speculation will not. be permitted 1 as a result of the improved borrowing facilities of the State lending institution were discussed by the Rt. Hon. G. W. Forbes, Leader of the Opposition, in the House of Representatives yesterday. • To prevent speculation was, he declared, the pious hope of every Government this country had seen, but in actual administration the difficulty in regard to preventing speculation was that there never was a clear-cut case. Governments could not deal with cases in blocks, for a question came up as affecting individuals.
He had in mind such' a case as that of a farmer who held a small farm for years, saving enough money to buy a larger one. He wanted to sell out the first farm. Could' the State say that lie was not.entitled to any goodwill, as it; did not belong to him, when he wanted to sell out a farm which originally cost him £lO an acre and buy another at £2O? 'Where the principle broke down, concluded Mr. Forbes, was that it could not be applied to everyone. The answer of the Minister of Finance, the Hon. W. Nash, some hours later, was that reasonable facilities would he given to borrowers from the State Advances Corporation to transfer their security. In such cases, for instance, as men who borrowed to build a home, but were transferred to some other place, they would not be prevented from selling, and if they had added to the value of the property, and this appreciation was agreed upon, there was no reason why it should not be given to them. Mr. H. C. Dickie (Nat., Patea): Why not in any case? The Minister replied that the corporation had loaned more money than they would have obtained in normal circumstances. If that was done by the State for the general benefit of everybody, because they were entitled, to assistance, they should not have the power to sell that assistance.
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Bibliographic details
Poverty Bay Herald, Volume LXIII, Issue 19028, 30 May 1936, Page 5
Word Count
346GOVERNMENT LOANS Poverty Bay Herald, Volume LXIII, Issue 19028, 30 May 1936, Page 5
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