PARLIAMENTARY

Taranaki Herald, Volume XLIII, Issue 10113, 20 September 1894, Page 2

PARLIAMENTARY

GENERAL AS§EMBtY OF NEW ZEALAND. LEGISLATIVE COUNCIL. Wednesday, September 19. — Tlte Speaker took the chair at 2.30 p.m. The Hon. Dr. Pollen was granted leave of absence for' tbe remainder of the session. The Hon. Mr Jenkinson ffiwved for a return of the cost of the now buildbp at Sunnyside Asylum, together with the wages earned by day or week by each man, whether on the co-operative system or day work. The return was agreed to. The Hon. W. McCullough moved in the direction that the Government in any bill to amend the Municipal Corporations Acts should include a clav^e enabling Borough Councils to acquire private gas or waterworks. A long debate ensued, some of the members remarking that no sooner did private enterprise pay than an attempt was made to annex it either by the Government or a corporation. The motion wai lost by 22 to 9. The l?ew Zealand Company's Land Claimants Bill afld the Westland and Nelson Coalfields Administration Bill were read a second time. The Tramway Bill was fiirttef considered in Committee, and amended in the direction that the existing lines shall not be interfered with. Progress was reported, with leave to sit again. The Government Eailways Bill was read a first time. The Council rose. HOUSE OF REPRESENTATIVES. Wednesday, September 19. — The Speaker took the chair at 2.30 p.m. Mr Roderick McKenzie gave notice of a question asking whether the Government is aware that 220 miners on the West Coast had been dismissed from employment within the last fortnight, and that 400 people are on the verge of starvation. The Premier informed the hon. gentleman that it was not necessary to burden the Order Paper with his questions. The position had become so serious that the Government had taken the only alternative that was in its power. The coal companies had not acted upon the report of the Eailway Committee, and the men being out of employment and starving, tho Government had given instructions to immediately decermine the leases of the whole mines of the two companies — the Cardiff Coal Company and Mohikinui. In reply to questions, it was stated that a small quantity of seed for sugar beet had been ordered, and would be distributed amongst farmers who had land suitable for growing beet; that a leaflet would shortly be issued on the subject of foot rot in sheep. The Government Railways Bill was reported from Committee, read a third time, and passed without debate. The Rating Bill was further considered in Committee. Clause 22 was amended so that ten days, instead of seven days, should bo allowed in which to make objection to valuations. The House adjourned at 5.30 p.m., and on resuming at 7.30 p.m., The House went into Committee on the Rating Bill. Clause 63 — rates overdue for two years cannot be recovered — caused considerable discussion. Several members defended the clause, whilst others opposed it on the ground that local bodies should not be put on a different footing from private persons, who could recover debts due for six years. The clause passed by 41 to 17. The remaining clauses passed unaltered, and the bill was reported without material amondment, read a third time, and passed without debate. The Hon. J. G. Ward moved the second reading of the New ZealandJConsols Bill, to afford facilities for the investment of savings by the creation of New Zealand inscribed stock. He said the bill was necessary in order to enable people to deposit larger sums of money than could be placed in Postal Savings' Banks, which did not pay interest on larger sums than £500. Building societies and other societies who could not now deposit more than £500 in Postal Savings Banks would be able to do so under this bill, and receive four per cent interest. In the British Dominions the 6ystem of consols had existed for many years with great success. One purpose for which the consols money would be used would bo for paying off, from time to time, treasury bills. The maximum amount of tho consols would be one million, and the rate of interest was not to exceed four per cent. A safeguard had been introduced into the bill to prevent syndicates outside the colony from investing in these consols, and if the Bill were not properly safeguarded in this respect he should be willing to amend it in Committee to meet such an objection. When he told them that the amount of consols in England reached 535 millions he thought it was sufficient to show that that form of investment was considered in that great country a sound one. Dr. Newman thought that before long the people of this colony would be wringing their hands over the large amount of debt that this Government was heaping on them. This bill was only another one of the borrowing measures introduced by tho Government because the finances of the colony were going to tho bad so quickly that this money was required to keep it up. Ho would like to know what the Government really intended to do with this money, for if it was only wanted for Treasury Bills he hoped the House would not pass the bill. Sir Robert Stout said nothing pained him moro than to see the easy, jaunty way in which proposals to borrow millions of money had been received by the House. If all the Financial Bills of the Government were carried, tho colony would be pledged to 5£ millions for this year, and 2{ millions for next year, and so the amount would go on increasing. They were simply going, by this bill, to borrow a million of money and convert the floating debt of the colony into a permanent debt for forty years. By oncouraging people to take up money by these consols it would limit the business of banks and financial institutions, cripple the business of every manufacturer and trader in tho country, and cause great injury to all mercantile business. A grave responsibility rested on the House at present, and they were on the eve of a great financial crisis, such as he had never known for years past. From every point of view tho Bill would injure the colony, and it would not improve a hundred of our people. Captain Russell said it was amusingito hear Mr Reddon talk about Sir Robert Stout being an apologist for syndicates and financial institutions whon Mr Seddon was the leader of the I Government which had done more to bolster up the banking institutions than any other Government that ever sat on the Treasury benches. He (Capt. Russell) regarded this bill as a perfect monstrosity designed to give ' tho Colonial Treasurer a million of money to squander in any way he chooso. If tho borrowing policy of the present Government was I persisted in the credit of the colony would bo absolutely damned and repudiation would be the word that would be used. He moved as an amendment, that it is not desirable by tho New Zealand Consols Bill to still further extond the policy of { borrowing in direct contravention to the will of the people as declared at the last general election. Mr Geo. Hutchison seconded the amendment, aud strongly condemned tho Consols Bill. Ho quite agreed with Sir R. Stout, that thoy wero on tho eve of a great financial crisis. It was a most wanton and profligato scheme to introduce by politicians of easy virtue Mr Reeves said Capt. Russell's amendment was a direct attack on the Government policy, and thib time had como from its proper quarter. Tho Govern- j ment expected their financial policy would ho attacked, and that it would be attacked by the representatives of financial institutions. If tho Consols Bill wero not pa*sud tho Government would raise the same amount of money, but by other

means. Tho qifcstion was, whether they would have a certain number of 1 Consols or a certain number of." Treasury Bills or debentwses. So farfrom the scheme taking money from the; Bank of New Zealand it would put money into it, because every sovereign received' as' consols would be deposited in tho bank~ He saw no cause at all for thinking that, to invest money in consols would weaken the banks, Mr G. W. Russell supported tho bill, and Messrs Buchanan, Bell, and Crowther opposed it. On division, the amendment was negatived by 38 to 10". The debate on the seccrnd reading was then adjourned on the motion of Mr Montgomery. The House rose at 1.20 a.m.