POLITICAL NOTES

Dominion, Volume 9, Issue 2778, 24 May 1916, Page 6

POLITICAL NOTES

BANKS AND INTEREST

CHARGES AND A DEFENCE

A vigorous defence of the banking institutions in New Zealand against attacks made upon them by Mr. John Payne was made by Sir Joseph Ward in the House yesterday afternoon. Mr. Payne, moving the second reading of the Limitation of Interest Rates During War Bill, said that tho banks held la millions of money on account of farmers and others, and that they , were robbing the farmers of the interest on this money, while they (the banks) had invested it in London at high rates. He used very strong terms in his denunciation, eucli as "steal," "theft," and "robbery," all often repeated.

Sir Joseph Ward said that from bis own personal knowledge the banks had acted with uncommon fairness to the people of this country during the war period. He could say with authority that from tho time that, the National Government had been formed, the Government rates of interest on advances to farmers and to workers had been 5 per cant., less a half per'cent, upon prompt payment. This rate had never been raised. The Government rate for advances to local bodies was i\ per cent. This rate also had never been raised. The rate at which local bodies could borrow from the public was limited to 5J per cent. From his own knowledge he could say that tlio rates charged by onuking institutions had been kept at from 5£ to 6J per cent. There might havo been cases where the rates for some particular reason had risen beyond that, but the rates .current in the banks had been from 5J to 6J per oent. to people requiring accommodation. Ho felt it his duty to make this statement because anyone reading tlie speech of the member for Grey Lynn might not know what amount of importance ought to be attached to his remarks. It was "a pretty rough thing" for a member of the House to say'of responsible men who. were co-operating with the Government that they were thieves. The statement that 19 millions of money held by the banks at call was earning from 6 to 10 per cent, interest in, London was, from his own knowledge, contrary to faot. There was nothing to be gained by making these statements calculated to create a feeling of uneasiness among peoplo who had not the opportunities possessed by members of Parliament for getting information. He believed that to limit interest rates would, be ruinous to the very people the member for Grey Lynn wished to benefit. If the rate were limited to, say, 6 per cent., and some farmer or working man wanted money urgently, all that the moneylender would have to say was "I won't lend," and the unfortunate man in need of money would go down. Ho recognised that the money held by the banks should be utilised not only in the interests of the banking/institutions biit of all the people' requiring assistance from them, and of the country as a whole. FAIR RENTS, One of the. innocents slaughtered, by the i'l'imo Minister's motion to take private members' days yesterday was Mr. R. A. Wright's Rent Restriction Bill. This Bill provided that it shall not be lawful to demand or receive any sum by way. of rent greater than the sum paid as rent for the samo premises immediately before the fourth day of August, 1914, except pursuant to a subsisting agreement entered into by the landlord and the tenant prior to that date. In the case of premises which when war broke out were unlet'no greater sum shall bo demanded or received by way of rent than was then demanded for tho samo premises or, if 110 ront was then demanded, than the rent that would have been then procurable in tho locality for similar premises. In the case of premises erected sinco the war no greater sum shall be demanded or received by way of rent than would have been then procurable in tho locality for similar premises. In the case of premises to which any structural addition or lepair has been made since tho said date, no' addition shall bo made to the rent greater than ton per centum per anniuu of the actual cost of such ntructunil uddlion or Tepair. It is provided that any person aggrieved by a broach- of any of these provisions may appeal to ft Magistrate, and the Magistrate may reduce the rent, and order the landlord to refund the amount overcharged. Tho Bill, it was intended, should remain in operation until six months after the end of tho war.

VIOLENT LANGUAGE. In concluding liis remarks yesterday in the debate on his. motion respecting the order of tho session's business, tho Primo Minister expressed satisfaction at the fact that there had not been fluite so much violent language used during the debate as had been used during other sittings, of the session. In this connection ha Baid he winhed to give members a word of -warning. Some of the expressions that/ had fallen from some members recently were not creditable either to fhera or to the Houso. He would not men. tion names, but' ho would content himself with saying that if tli» use of such expressions was continued, it would probably lead to a scene that would be a disgrace not only to tho House but to the country. Mr. Payne: Let it come! Mr. Poland (Ohinemuri): I think' that tho Prime Minister should mention names in order to bo fair to tho Houso. Mr. Massey: House knows I am not referring to the member for Ohinemuri. THE COMPULSION BILL. The Military' Service Bill has not yet made its appearance. The Primo Minister indicated yesterday that it hag yet to come before Cabinet beforo being tinally passed for introduction. It may come down to-day.