STATE INTERFERENCE

Timaru Herald, Volume CXXXVII, Issue 19372, 22 December 1932, Page 8

STATE INTERFERENCE

LOSS OF CONFIDENCE CAUSED.

PARLIAMENT CRITICISED. By Telegraph—Presa Association WELLINGTON, December 21. Mr Burgess, chairman of the Associated Chambers of Commerce, in a statement to-day, said the fact must be faced —more harm than good was being done by legislation interposing the State in private contracts. However pressing the situation, and however great the justification, the legislators of the country considered to be theirs in making those laws ,it should be clearly indicated that they are of a purely temporary nature, and should be cancelled at the earliest possible opportunity. Mr Burgess said the legislation, while of some immediate benefit to certain farmers, destroyed the confidence of investors in mortgages, and made it harder than ever for members of the farming community, as a whole, to arrange their finance for carrying on. This must necessarily follow interference with the inevitable economic processes. “It is evident that the general public is looking to the Parliamentary machine to legislate us into better times,” said Mr Burgess. “I wish to stress on behalf of my Association that this is altogether wrong. The new statutes for such purpose are of no use, because if those statutes interfere further with natural economic processes, they will not merely be useless, but ciefinitely injurious.” It was hoped that Parliament will cease to interfere with trade, industry and commerce. The business world is endeavouring to carry on not with the help of what Parliament does, but in spite of what Parliament does. The powers of Parliament have been widely used beyond their proper sphere, and it is time the country realised that individual endeavour is the mainspring of trade prosperity. “We are confronted with circumstances which can be surmounted only by the determined process of individual adjustment to conform to the reduced national and private income—-an adjustment that is still going on quietly and unobtrusively in private business. This remedy may be unattractive, even painful, but it is the only remedy. There are two things Parliament can do—stop borrowing and reduce expenditure. There were many recommendations made by the National Expenditure Commission which had not yet been adopted. Beyond that the country needs a legislative holiday in order that we may be enabled to get on with the job.” Tinkering with Troubles. “Until the Parliament of this country stops tinkering with legislation allegedly designed to assist the Dominion we will never get out of our troubles,’ said the chairman, Mr Harman Reeves, at the 50th annual meeting of the Dunedin Stock Exchange. He vras referring more particularly to the recent mortgage relief legislation. “The Parliament of a country in these days,” said Mr Reeves, “plays such an important part in the rise and fall of stocks and the welfare of the business community generally that I make no excuse for saying that it is a pity that the Parliament of this country could not be closed up for some time in order to let conditions right themselves. Although we as an Exchange are not directly interested in the legislation affecting mortgages, I think it is a pity that legislation of any sort has been introduced to interfere with the sanctity of these contracts. Left alone, the differences between mortgagee and mortgagor would have righted themselves. An uneasiness and want of confidence have become so manifest recently that it permeates every business, and until the Parliament of this country stops tinkering with legislation allegedly designed to assist the country, we will never get out of our troubles. There are vast sums of money lying on deposit in the banks waiting for an opportunity for investment when confidence is restored. That one word, ‘confidence,’ is the keynote to the w hole position. “A few months ago it was stated authoritatively that our Governmental position was improving, and that the general outlook was bright. Investors and traders generally, believing this to be true, took confidence in the future, and a marked improvement became manifest in all business and trade in the community. Investment stocks began to improve, Government securities hardened on the market, and money was beginning to circulate so freely that it looked as though we were in for an era of cheaper loan money. This confidence w’as utterly shattered toward the end of November by Press statements from Wellington that the state of the country’s finance was such that it might be necessary to have an emergency session in the New* Year, and the whole country was pulled up with a sudden turn. To-day there is a lamentable lack of confidence, which will take some time to dispel. “I believe the present Coalition Ministry is doing its best in a most difficult position, and deserves the thanks of the community for its efforts. It is a most unpleasant job and I am confident that if left alone it will yet put the Dominion’s finances on a sound footing.”