CITY LOAN RATE SHOULD BE ONE PER CENT.

Wanganui Chronicle, Volume 90, Issue 55, 7 March 1946, Page 3

CITY LOAN RATE SHOULD BE ONE PER CENT.

ELECTORS’ ASSOCIATION SUGGESTION Interest charges on city loans will form the subject of a retcrendum to be conducted by the Wanganui Electors' Association, according to a decision made at a mee.ing of members last night. The question which will be put to electors is whether they favour a reduction of interest on ail City Council loans to o.ne per ce.il. The decision was made in the form of an amendment to a mo.ion that u referendum be held on the subject of creating a Dominion Credit Authority. Moving the amendment, which was adopted by 12 votes to eight, Mr. W. D. Ayson said that Wanganui ratepayers were being asked to authorise two loans, totalling £190,000. If these were issued at one per cent., a reduction of two and a-half, £4OOO would be saved yearly in interest charges. If the whole of the city's indebtedness were converted to a Reserve Bank loan at ihe -ame rate, the annual saving would be about £20,000. At the present time £56,000 of the city's rate revenue was absorbed by interest charges every yeai

The organising-secretary, Mr. R. O. C. Marks, moved originally that a referendum be held on the question, of the establishment of a Dominion Credit Authority, the duties of which would be to conduct an economic survey, and by periodical budgetings ensure that the balance between total purchasing power and production, plus imports and minus expor.s, should be maintained. The authority should also indicate from time to time the amount of increased purchasing power which should be made available to (he people in the form of new money.

Mr. Marks said that a lot of people felt tha. the methods by which the country’s affairs were financed were unsatisfactory, but did not suggest constructive alternatives He doubted whether any. Government would dare to impose those so-oalled economies which were inflicted on the country in 1931. Finance was a matter for experts, but they would probably not like to be governed by financial experts. However, such people should be called on to work out the details to give the country a planned economy.

“There should be a statutory body to look after oui' financial affairs,” added Mr. Marks. “This would be a Dominion Credit Authority, and a move has been started to have s'iich a body created. In this electorate it is proposed to hold a referendum cn the subject, al .hough in other places petitions are being circulated.'' Opposing the suggestion to hold a referendum on the subject. _ Mr. A. Bullock said that not one in 1000 electors realised what the functions of a credit au'bority would be. The subject was a very technical one, and the function of the Electors’ Association should be to educate the electorate on this subject before holding a referendum. Mr. W. D. Ayson agreed that there was a danger .hat the objects of the association might be damaged by the holding of a referendum on such a subject. The money question was the most vital one in the world, but could they do anything to educate people in the time available? Mr. Marks said that the functions of a Credit Finance Authority could be explained in footnotes attached to the question paper. • The motion to hold a referendum on the subject of a Dominion Credit Authority was lost.