LAND ASSOCIATION BILL.

Ashburton Guardian, Volume V, Issue 1266, 17 June 1886, Page 2

LAND ASSOCIATION BILL.

he following is the “ Hansard ” report he speech made by Mr J. Ivess In ■ing the second reading of the Land ociation Bill Sir, in moving the mdr residing of the Land Association . 1 feci that I am placed in a very :ward position and that I have ac tod a very hard task, inasmuch [ look upon it as almost utterly lelesa for any private member expect to be able to pilot such eavy Bill as this Is successfully through i House. It has been very carefully ifted by a number of gentlemen who 70 a mastery of the subject, and who re acquired considerable experience, ring the past two or three years, in inection -with the Colonial Land Assoc-a----n, conducting Its operations in the hburton County. A number of gontlem interested have had this scheme dor consideration for the last two or ree "years. They had sincerely hoped at the Colonial Treasurer would this asion have Introduced a Bill to extend lief to the long-suffering agriculturists, accordance with a speech he made at uckland in March last. He then disnctly stated that ho felt it incumbent i the Govsrnmeut to provide some easure of relief to the struggling agriculirista. who are contending against a heavy ite of Interest; but, at the very time we are loking for the fulfilment of that promise, e brings down his Financial Statement, m hich he says that nothing is to be done i this matter. I need hardly say that reat disappointment has been caused hroughout the country among those lumerous persons who had been hopefully ooking forward to the measure of relief hat had been promised them. I need lardly dwell on the great hardships that rave been experienced by those persons vho have been labouring for many years mdet a very heavy rate of interest. Aa ,he Colonial Treasurer very truthfully remarked at his Auckland meeting, whi’e arge borrowers are now run after by oapitalists and money-lenders, and can borrow at comparatively low rates, the amali struggling settlers who require to borrow money are neglected. Now, I hold i is incumbent on the Government to do something for these agriculturists, whose headway is so seriously retarded by the high rate of interest they ha w o to pay. .A gricu'turists look forward with as much longing to a measure of this character as the people on the goldfields look forward to the abolition of the gold duty. It is their one and constat aim to bring about a reduc' ion of the rates of interest. List session the House passed the Mortgage Debentures Act, from which it was hnp?d some relief would bo secured, and on its being passed it was believed the thin end of the wedge had been inserted ; bat after givir g the rneisuro a fair trial, it has proved to be entirely unworkable in favor of those for whose special benefit the Act was passed. It is found to be utterly useless, and, with that knowledge and knowing also the pressure that has been brought to bear all over the country in regard t»this question, I do hope this House will be inclined to assist those who are desirous of assisting tbemselves by extending to them some kind of machinery by which they will be enabled wkh greater facility to raise money at a cheaper rate, if not in the colony, at least In England. Now, this Bill which I have the honor to be placed in charge of may be said to be a cumbersome one by those who are not readily able to grasp its bearing ; but I trust the House will give me its indulgence, and allow me at all events to explain the principle of the measure andtogiveaomesccount of its machinery, by which it is.propo ed to enable agriculturists to enter the market and raise leans with greater facilities than they now can do. Ido not cay the Bill is perfect as it stands, but 1 think those honorable members who have been for so many years clamoring and agitating for a reduction in the rate of interest will now have an opportunity of showing if they aro sincere and earnest in their desire to afford remedial measures to the agriculturists. I know of my own knowledge that the high rate of-interest has had a very baneful influence against the growth of the agricultural industry In Canterbury and elsewhere. Only today I was looking over the returns in the Registrar-General’s report of the amounts borrowed on moitgage during the past two years in the colony, and I find the figures to be enormous They are, In the different provincial districts :

Auckland 2,709,216 Taranaki 459,065 Wellington ... 2,518,986 Hawke’s Bay ... 1,614,439 Nelson ... ... ... 380,487 Marlborough ... ... ... 191,547 Canterbury ... 9,284,871 Otago ... ... ... ... 5,336,691 Southland 3,523,139 Westland * 71,330 Total £26,089,771

' That is the huge total of the private indebtedness of the colony secvred on mart* age, and is irrespective of the debts of the 'ocal bodies and the colonial debt It will be sean that, with such an ex traordinarily large indebton'ss, there must bo a very great strain upon those who are called npon to bear the burdens of this colony, who are the agriculturists of New Zealand, and it behoves us to do our best to lighten their burdens ; and, if we only try to extend to tnem the measure of relief sought to be secured by the Bill I am now advocating we shall convince them of our desire to extend to them what assistance we can. Oaring the last year the increase to the private indebtedness of the colony was £1,677,231, and _ these great figures should be sufficient to convince honorable members of the urgency of the question. Now, it may be urged that the rate of interest has been very considerably decreased during the past ?wo years. 1 know myself that since the depression began to lift there has been a slight diminution, because, in many instances where money could not formerly be borrowed for loss than 9 or 10 per cent, it can now be borrowed at 7 per cent. But 1 think It will bo readily admitted that even 7 per cent is altogether too high, when we know that capitalists in England are glad to lend money on mortgage at 3 per cent and 3| per cent. Why should we have to pay double the interest at which money can be borrowed in England. As we have to do so, I think some steps should be taken to reduce it, Some honorable members may think the State lending to farmers or guaranteeing interests on loans to them is an innovation ; but we have a precedent In Ptuasla, where a similar scheme was originated, by a farseelog calculating merchant, In the year 1772, Starting in that year, the system of the “ Landschaft," as It was termed, was such a success that in a few years It was found that its operations had reduced the rate of interest from 6 to 5 per cent. It had also another good eflect, because the joint-stock banks established in the country issued notes, guaranteed by the State, upon properties to the amount of two thirds of the assessment of their value ; and these notes, guarastead, as they were, by the Bank of Prussia, were freely current and negotiable. The experiment was first tried in the province of Silesia, and it was such a success that it was soon extended to all the other provinces of

the kingdom. During the first eighteen years the operation of the system extended to about two millions of money,

«nd by 18 '7 the amount had ti-icn to about eight rndhons. 80 firm’y did the system bee mo rooted in the country that by 1837 to 1840, they succeeded in rcduc’ng the rate of interest from 5 to 3i per cent., and it is well to note that the securitise

ranked higher than any other securities whatever. By that time the total of land-notes in circulation had increased to twelve millions. It will therefore bo seen that such a scheme has proved successful In a country like Prussia ; and 1 am quite sure that it only reqnires trial here to prove similarly successful. The Bill ha 5 been so drafted as to provide for all instances of the cise. I may be permitted to briffly explain its more salient points. In tho First Part it provides for the establishment of co-operative associations, and all associations- now trading or registered under that heading ate per. mitted to participate in the advantages of this Bill, but any hereafter registered must be comprised of members at least two-thirds of whom are engaged in agricultural pursuits—that provision must da campised with before a new association can be allowed to taka advantage of the provision of this Bill. Then, they will be permitted to issue what are called general debentures; but the association must have raised &t least t tenth cf the maximum v»luo of its copital before it can issue those debentures. Part If, provides for the use of loans, the general borrowing powers, | and the administration of tho association. The loans are to ba applied to i he payment of liabilities, the paying off of contracts or additional loans, and the issuing of debentures after the receipt of the certificate of the Registrar. The directors cm then seU their debentures in tho London money-market for the nominal amount authorized to be issued within or without the colony. Tho powers of the English agent of the association and of the agents generally will be to borrow money, in England and elsewhere in Europe, by bonds and otherwise, and by shortdated debentures, which shall not bear greater uvterest than 6£ per cent. ; but the association can reduce that Interest if it can obtain money at a less rate. Mr Ivess then proceeded to explain the various clauses of the Hill seriatim and | concluded as follows: —There are numerous other c'auaes in the Bill which 1 has been placed in my bands to explain to the House. Many members may consider it a herculean task that wn imposed upon me to describe it, but I rely on the intelligence of honourable members to follow the Bill for themselves. I am quite sure they will have no difficulty in doing that. I may also add that I have not the credit, nor do 1 wish to accept the credit, of drafting this Bill. As I said in my opening remarks, It has been drafted by a gentleman who has given long study to this important subject, and who has full confidence that the measure will be liberally and fairly dealt with. All that be is desirous of Is, that an impartial discussion should be elicited upon the various clauses of the Bill. There may, of course, be many cm.rsions in the Bill, and perhaps tho inte'pretations of the varicu* clauses are not fairly set out

For instance, there is an omission as to who should occupy the position of Registrar ; bub the aema thing occurred In the Mortgage Debentures Bill. When that wrs introduced tho position that the Agent-General was to occupy wts not defined so Ido not think the House will decline to discuss the mo. its of this Bill because there may be a difficulty in defining the various provisions of ihe Bill. 1 am sure tb-\t the mea ure will receive duo attention at the hands of motnlers of tho

Houe', many of whom, I observe, have taken a keen interest in iho subject, not only during the time the Mortgage Debentures Bill wes under discussion, bet when they were on l ho hustings seeking

Beats in this Assembly ; and, as tho time is not far distant when they will occupy similar positions and be called upon to account for the action they have t?kcn in reference to this Bill, I trust tiny will, at all events, allow it to go into Committee.

I am sure it may be there amended and made workable by the united wisdom that is likely to be bestowed upon it.