“CAUSING TROUBLE.”

Star (Christchurch), Volume XLIV, Issue 257, 29 October 1931, Page 11

“CAUSING TROUBLE.”

Effect of State Advances Operations.

(Special to the " Star.”) WELLINGTON, October 29. In an editorial, the “Post” says:— “ On seveml occasions we pointed out that the extension of State Advances operations was likely to cause trouble. It is seen now that this is so, and the Government is being pressed to make concessions to Advances mortgagors. It would have been better if the conditions leading to aggravation of the difficulty had been avoided, but now that the difficulty is here it must ba faced. So far as possible, in the interests of the Government and the borrowers, the mortgagors must be nursed until the worst of the depression is past. “But there must be due regard for the rights also of the general taxpayers —the people who have not received State advances. These people, in their farming and housing finance, have had to rely on private advances—often at higher rates than those paid by the State Advances borrowers. Is it right now that they should be called upon to provide a subsidy (by way of general taxation) for the relief of those Government borrowers who are generally in a more fortunate position than they are themselves? ”