INTEREST PAYMENT

Southland Times, Issue 23287, 25 August 1937, Page 4

INTEREST PAYMENT

REPORTED DESIRE FOR ABOLITION Attention to what he termed a disquieting speech delivered by Mr Ormond Wilson, M.P. for Rangitikei, in which he stated that it was the Government’s intention to do away with interest, was drawn by the Hon. J. G. Cobbe, M.P. for Oroua, in an address at Halcombe, states the Palmerston North correspondent of The New Zealand Herald. Mr Wilson, he said, was in the confidence of the Minister of Finance, and any statement from him may be accepted as a statement of the intention of the Government. Mr Cobbe said that when speaking at Marton, Mr Wilson had stated:—-“In the end our desire is that interest shall go altogether. Today, of course, that is impossible, and to utilize the savings of the people we must offer interest, using all funds, and the Government has thousands of millions at its disposal, so that there shall be no waste in our objective.” He then went on to say: “Never again will New Zealand borrow overseas. We do not need to. If the time comes when we need more money we shall come on the country again. If the public do not subscribe to conversion we will have power as a Government under the Reserve Bank legislation to lend money to ourselves. “This statement is far-reaching and most disturbing,” said Mr Cobbe. The intoxication of power has evidently made the Government reckless. It is hard to believe that the Government really understands all that is involved in its objective and how it would affect the country if it came into operation. “Statements such as those contained in the speech from which I have quoted must have a very disturbing effect. The matter is so serious that the country has a right to have an early statement on this important subject from both the Prime Minister and the Minister of Finance.”