BLOCKING SPECULATION.

Wairarapa Age, 30 May 1936, Page 5

BLOCKING SPECULATION.

OPPOSING VIEWS STATED IN HOUSE. MB. FORBES EXPRESSES DOUBTS. FINANCE MINISTER INDICATES POLICY. (By Telegraph—“ The Age” Special.) WELLINGTON, May 29. Emphatic warnings by Ministers that speculation would not be permitted as a result of improved facilities for borrowing from the State lending institution were discussed by the Rt. Hon. G. W. Forbes, Deader of the Opposition, in the House to-day. To prevent speculation, was, Mr. Forbes declared, the pious hope of every Government this country had seen, but in actual administration the difficulty in regard to preventing speculation was that there was never a clear-cut case. Governments could not deal with cases in blocks, for the question came up as affecting individuals. He had in mind such a case as that of a farmer who held a small farm for years, saving enough money to buy a larger one. He wanted to sell out the first farm. Could the State say he was not entitled to any goodwill, as it did not belong to him, when he wanted to sell out a farm which originally cost him £lO an acre and buy another at £2O! Where the principle broke down, concluded Mr. Forbes, was that it could not be applied to everyone. The answer of the Minister of Finance (the Hon. W. Nash) some hours lafer, was that reasonable facilities would be given to borrowers from the State Advances Corporation to transfer their security. In such cases for instance, as those of men who borrowed to build a home but were transferred to some other place, they would not be prevented from selling and if they had added to the value of the property and this appreciation was agreed upon, there was no reason why it should not be given to them. Mr. H. G. Dickie: 1 ‘ why not in any casef”

The Minister replied that the corporation had loaned more money tfyan they would have obtained in normal circumstances. If that was done by the State for the general benefit, everybody, because they were entitled to assistance, should not have the power to •ell that assistance.