FIXING RATES OF INTEREST.

Timaru Herald, Volume CXXXIV, Issue 18830, 19 March 1931, Page 9

FIXING RATES OF INTEREST.

Mr Lang’s Proposals. FINANCE SYSTEM THREATENED. United Press Association—By Electrlo Telegraph—Copyright SYDNEY, March 18. Explaining the Interest Reduction Bill, Mr J. T. Lang said it fixed rates for private borrowing at 5 per cent, on first mortgage, 6 per cent, on second or subsequent mortgage; 5 per cent, on hire purchase goods or land buying on the instalment system; deposit rates, call money, lh per cent., 3 months 2 per cent., 6 months 2i per cent., one to two years 22 per cent. The Bill does not apply to- agreements covering the payment of interest outside the State to other than residents in New South Wales. Agreements and obligations entered into with the Crown or State Savings Bank are also exempt. Mr B. S. Stevens (former Treasurer) said he feared the Bill would destroy the existing system of finance and dissipate the little confidence remaining in industry.

Mr Booth (Labourite), supporting the measure, attacked the Legislative Council which, he said, was determined to defeat the Bill at all costs. “We take up the challenge and will fight with every ounce of energy we possess. If Opposition members try to meet the position with armed force, we will meet them with armed force, and beat them.”

The Speaker intervened, calling Mr Booth to order. The Bill was read a first time. The second reading is fixed for today. ARREARS OF INTEREST PAYMENTS. POSITION OF LANG GOVERNMENT. United Press Association—By E>ectrle Telegraph—Copyright (Received March 18, 9.30 p.m.) CANBERRA, March 18. The fact that the Lang Government is £220,876 in arrears in the payment of interest due to the Commonwealth was disclosed by Mr Scullin in the House or Representatives. In stating that this amount was overdue, Mr Scullin announced that the Commonwealth Government was now considering the matter with a view to taking appropriate action to ensure that the Commonwealth law and constitution were upheld.