“TRAP FOR MR. STEWART”

Taranaki Daily News, 1 August 1930, Page 11

“TRAP FOR MR. STEWART”

STATE GUARANTEED BONDS MR. POLSON ON RURAL ADVANCES PASSAGE-AT-ARMS IN HOUSE. (By Wire— Parliamentary Reporter.) Wellington, Last Night. A brisk passage-at-arms between Mr. W. J. Polson (Independent, Stratford), and the Reform Party front-b.mehers enlivened proceedings in the House of representatives to-night. In the course of .a speech on the Budget Mr. Downie Stewart (Reform) had criticised Mr. Polson for his attitude to-wards rural advances bonds and to this ' Mr. Polson took early steps to reply. His initial references to the subject provoked a storm of R.'form interjections, Mr. J. G. Coates loudly exclaiming that one statement was ineorMr. Polscn (warmly): No it not; I kno\v what I am talking about. "You don’t,” retorted Mr. Coates. Mr. Polson: The' Government passed legislation making rural advances bonds State-guaranteed -ootids and those bonds are still State-guaranteed;

Mr. Coates: Why did you sign the report of the commission? report -of the commission? Mr. Poison declared that Mr. Stewart, when pressure was brought to bear .on him by the Bank of New Zealand after the legislation had been passed, had written across the face of the bonds that the Government did not guarantee payment and ; had thereby ruined the whole lot. Notwithstanding that Mr. Stewart had the .audacity to say that Mr. Polson was responsible, ' Mr. Polson said that although he had been appointed to the Rural Advances Board to assist in the administration of .the Act he'had been accused of .endeavouring to' destroy the effect of the legislation. He had done his : best to assist in building up a system which was a very fine one when it was properly understood. The fact .of the Government’s not standing by the bonds meant that an extra half per cent, .had to be charged.

In reply to an interjection Mr. Polson ■said the State guarantee idea was recommended in every line of the commission’s report, but this had not been “epotted” by Mr. Stewart in spite of the latter’s reputation fox (Sagacity. The passing of the report into law, however, made the bonds State bonds. “We deliberately laid a trap for Mr. Stewart to walk into,” he added. "That sounds well," commented Mr. ■Coates. Mr. A. M. Samuel; Loyal servants of the Government! Mr. Speaker: Order! Order!