“It Does Help.”

Star (Christchurch), Volume XLIV, Issue 191, 13 August 1931, Page 7

“It Does Help.”

To the Editor. Dear Sir.—Lower interest rates do bring relief to the workers. As there seems some doubt on this score among many people who should know better I think the following extract from the Melbourne “ Herald ” is worth quoting:— A timely example comes from Bendigo to show the almost immediate effects of the economy plan, particularly the reduction of interest on bank advances. The Bendigo sewerage authority has been notified by the Commonwealth Bank, with which it has an overdraft, that from July 1 there will be a rebate on all loans of 1 per cent. This means that the sewerage trust will save about £789 on house connections, and another £639 on, deferred payments. As a result, there will be a reduction in the sewerage rate next year of threepence in the pound, and it is hoped that 1 , later the reduction will be increased to fourpence or sixpence. This represents a material saving in local taxation, ‘releasing moneys to the advantage of local spending power and, earnings. It is an indication of the great relief that will be given to the people and their industry—to city and rural dwellers both—when the burden of overdrafts has been eased throughout their whole range. In New Zealand I am convinced Mr Forbes’s economy plans will have a similar effect. The only difference her*is that we are taking wise measures early, and are not waiting until forced to more drastic action by accentuated depression. One essential need, how ; ever, is a reduction in the interest on city dwellings. Farmers are being helped in regard to mortgages, but urban residents, with similar burdens, are being ignored, even by prominent Labour M.P.’s, who prefer to shine in the publicity of the wage-reduetjon issue. They failed signally in that. Are they going to sleep on the other phase of the question—interest reduction on workers’ dwellings? Here is an opportunity for constructive work instead of talk.—l am, etc., 1 EYES OPEN. . |