PARLIAMENT.

Dominion, Volume 7, Issue 2227, 13 August 1914, Page 7

PARLIAMENT.

MONEY FOR THE WAR

INCREASED BORROWING POWERS MORATORIUM BILL PASSED The Legislative Council met at 2.30 p.m. The Local Elections, and Polls Bill, the Civil Service Oflicers" Guarantee Bill, and the Immigration Restriction Bill were read a first time. The Methodist Charitable and Educational Trust Act Amendment Bill (the. Hon. C. A. C. Hardy) and the Presbyterian Church Property Act, 18S5, Amendment Bill (the Hon.,J. Duthie) were read a second time. The Hon.G. JONES moved that the existing methods of cancelling national reserves be amended, so that more ample consideration may be given to such proposals. ' .. Tho motion was earned.' ;• The Master and Apprentice Amendment 1 Bill was referred back to the Labour Bills Committee on the motion of the Hon. H. D. Bell. The Fruit.Preserving Industry Amendment Bill was read a third time and passed. . . The Imprisonment for Debt Limitation •Bill (the Hon. J. T. Paul) was read a second time, and referred to the Statutes Revision Committee. '' THE HOUSE The House of Representatives- met at 7.30. plm. 1 The amendments made by the Legislative Council in the Mortgages Extension Bill were agreed to. Dr. A. K. NEWMAN (Wellington East) said that he was assured that if the Bill was passed in its present form no trust moneys would ever be lent under it, as the security offered was, not one which any lawyer could recommend. It had also been suggested to him .that the Government should'-introduce into the Bill'-a clause providing that the Bill s!»ould bo brought into force by Order-in-Council at a time when it might become necessary Although the Bill seemed to be very necessary a few. days ago, since then tho outlook on the money market wn9 ,very much better, and perhaps no such drastic measure was necessary. The Hon. A. L. fiERDMAN said he proposed to make certain amendments to the-Bill later: With regard to the point raised by Dr. Newman, the Bill was to have effect only while the country was at war, and was intended to protect people who oould not protect themselves—thoso hundreds of people who had bon owed money and who were liable at any time to find themselves in ,a difficulty. If the war came to an end shortly, and business improved, he believed it would still be possible with the Bill on the Statute Book for people with money available to lend it .on mortgage. THE PUBLIC REVENUES, AN AMENDING BILL.. : The Hon. J. ALLEN, moved the-second reading of the Public Revenues Amendment Bill, saying that thej technical clauses wort urgently needed to expedite aiid facilitate the worfc.of the Treasury in the present unusual dircumstances. He referred also to the increased' borrowing powers taken by the Government under tho Bill to provide for the extra heavy ■expenditure on account of tho war. He proposed to raise money by way of Treasury bills.for the war expenditure. This,, he thought, would be the wisest thing to-do for.the present. Later Parliament could bo consulted as to whether tho Treasury bills had better be redeemed by a -loaA; ot out of the wenue in a period flf years, : •' • ' ■ * SIR JOSEPH "WARD (Awarua) said that in dealing with the Bill one had to realise that New Zealand was passing through a period which was unprecedented m the country's history, .and he would, not oih pose the Bill. ' But he thought it ■ would have'been falrtt-Mf 'oil save'thoset'clauses directly relating to the war had been leftoirt of -the' 'Bui.--- Some of ■ the, olauses 'should havo been brought down at an

ordinary time. He would urge. that the Government '■ should see the wisdom of making the great powers conferred upon the" Minister of Finance ro-terminous with the present crisis. He did not think that permanent : increases in the general 6ervices of the country were desirable under such a Bill. . •, , ' , . Mr. G. W. RUSSELL (Avon) also urged that the power taken by the Government to increase the amount to be raised by Treasury bills should be only a tempos ary one. • ■ ' ~ Mr. T. M: Wilford, the Hon. D. Buddo, Mr. J. A. Hanan, Mr. H. G. Bell, and Mr. G. Witty, also spoke on the Bill, generally on the lines fallowed by Sir Joseph Ward. The Hon. W. FEASER (Minister of Public Works) said that the suggestion had' been made by the momber for Avon that, monoy • should be borrowed even, at an enhanced rate of interest, to keep the Bublic works going. He could- _ assure. iiem that everything would be uone to keep distress down. No men would be put off; indeed, extra men had been put on. SIR WALTER BUCHANAN (Wairarapa) said* that undoubtedly there would be increased unemployment owing to tho crisis. He was sure the Minister would do everything he could to keep works going. The Hon.-J. ALLEN, inreply, said that ho could not agree with the Leader of the Opposition that it Would have been right for him to bring down particular Bills dealing with' tho raising of money for particular' purposes.- -Machinery clauses were necessary at this time, and they were all in favour of' efficiency and economy. Why should not they put in tho-matters referred to, and have done with it? They were simply there to represent the people; and not only to consider the war. They had ordinary business of the country to consider, and they had to do - it, so long as it did not lead them into party wrangle. He referred to tlio criticism of the sug-gestion-to make permanent'the right to ' uiciTase the Treasury bills by half, a million.' They were- for the "Consolidated Fund'and tho Public: Works Fund. It whs .in anticipation of'the Loan Bill nnd the Treasury bills would ' bo redeemed v)ben the loan was raised. It was important that even Ihe limit.-for-Treasury bills'should he extended. There was a necessity, even apart- from tho war, to give the Government power to hnvo a larger limit for Treasury bills than ono million. It was impossible to say what money would be required. Banks were now in a . perfectly strong position, and he saw no reason why there should - bo any ', alarm over, the finances of the country. The Bill was read a sccond nine. Tho Bill was committed, reported with amendments, .and read a third time on the voices'. The House rose at 11.20 until 7.30 p.m. to-dar;