RATES OF INTEREST.

Waipukurau Press, Volume 11, Issue 39, 12 August 1920, Page 2

RATES OF INTEREST.

U ESTR ICTION RETAIN ED. ANOTUEi; STATEMENT BY MR AIASSEY. “Aly opinion is that legislation is not required,” said the Prime Alinister in the House of Representatives, when asked by Air Sidey (Dunedin South) if he could introduce legislation to enable local bodies end educational authorities to pay more than 51 per cent, for borrowed money. Air Sidey had stated that tho local bodies found great difficulty in arranging their finances within the restriction .imposed by the maximum rate of interest. The rate of interest to be paid by local bodies for loans, other than over drafts, was controlled by the Government, added Mr Alasscy, and the Gov eminent intended fo continue doing everything within its power to keep the rate of interest down in New Zealand. If it yielded to the requests that were reaching it from many quarters, the rate of interest would be up to 8 per lent, very quickly, and that would not be good for anyone—not even for the lenders. He did not blame the local bodies for clamouring for money for various works, but he wanted to sec ;hcni get the money at a fair rate of inerest. The finances of New Zealand were in a perfectly sound condition at present, and compared favourably with those of any other part of the British Empire. He would deem- it his duty as ong as he could manage it to keep the finances in that condition.