STATE LENDING.

Waikato Times, Volume 112, Issue 18778, 28 October 1932, Page 7

STATE LENDING.

BUSINESS MEN’S PROTEST. - STATE URGED TO WITHDRAW. LEAVE TO PRIVATE ENTERPRISE. (By Telegraph.—Press Association.) DUNEDIN, Friday. At the conference of the Associated Chambers of Commerce, Mr Stronach Paterson moved a remit from the executive, asking tne Government to withdraw from lending on land and property and leave it to private enterprise. He said that State lending had had disastrous results to taxpayers. The asking of a moratorium to the Public Trustee for local bodies’ sinking funds Indicated the position in which the country’s finances had got. Mr A. F. Wright said they should obtain full information of the position regarding State lending. Mr F. H. Bass questioned whether they could get sufficient money from private enterprise. Mr P. 0. Smellie.said that at the end of March, 1932, the interest owing to the State Advances Department came to £940,000, and he doubted if it could be recovered. Instead of the losses being placed on the bondholders it was being transferred to the whole body of taxpayers. He saw no reason why the State Advances Department should* not be ultimately liquidated. He’ moved an addition to the remit as follows:—“ That v this conference considers that no new money be provided for the State lending departments, and that the State Advances Act and its amendments of 1913 be immediately repealed.’’ Confusion of Interests. Mr Machln said that the first mortgagee found sometimes that owing to Government priority he was only the fourth mortgagee. The State Advances Department was to-day competing for the business of the farmers, and yet it had no money. There was a confusion of interests. The Government had departed from recognised principles and the road to Hell was easy. Mr Paterson said he would be prepared to aooept the amendment. There was plenty of private money available for all the legitimate requirements of the borrowing on land. Mr Wright said the Government should oonflne itself to government, not to trading. The remit, as amended, was adopted.