“COSTLESS CREDIT”

Evening Star, Issue 22465, 9 October 1936, Page 13

“COSTLESS CREDIT”

£5,000,000 FOR HOUSING £3,000,000 FROM RESERVE BANK [From Our Parliamentary Reporter.] WELLINGTON. October 8. A clear indication of the Government’s intention to raise three of the five millions required for housing by means of what its critics call “ costless credit ” was given to the House tonight by the Minister of Finance. He said this sum could be provided by the Reserve Bank. One and a-halt million pounds would be made available to local bodies for housing, and the remainder for the use of the Housing/Dcpartment. ‘" The Government,” he added, “ is positively of the opinion that some new money for the expansion of production is needed for the benefit of the Dominion

Mr Poison: That is created money. The Minister: Yes, created money. Mr Wilkinson : Why not make some more at the same price. The Minister: That’s what the hon. gentleman wants—to spoil the whole thing.”

At an earlier stage of his speech Mr Nash explained that the Government would to the extent it could utilise the savings of the people. It would use them for rational regulated development of the country, and if more money was required it would utilise money provided by the Reserve Rank instead of that previously provided at a profit by the trading banks. The Government had never suggested that it would destroy the savings of the people, for it would utilise them in the best possible way by obtaining those savings at a reasonable price. Mr Ky!c; Paper money. 'I he Minister: There has been a lot ot talk about costless credit, but there has been no criticism of the Government's policy when it affirmed that it would first use the public savings.