RURAL CREDIT SYSTEM

Hokitika Guardian, 4 August 1930, Page 2

RURAL CREDIT SYSTEM

MR POLSON’S INTERESTING ■ DISCLOSURE. | WELLINGTON, July 31. j A brisk passage-at-arms between Mr Poison (Stratford) and the Reform Party benches enlivened proceedings in the House to-night. In the course ol' his Budget speech the Hon W. Downie Stewart (Dunedin West) had criticised Air Poison for his attitude towards rural advances bonds, consequently the president of the New Zealand Farmers’ Union took early steps to reply. Mr Poison’s initial references to the subject provoked a storm of Reform interjections, Mr Coates, leader of the Opposition, loudly exclaiming that one ■statement was incorrect and a misrepresentation. ! Mr Poison (warmly) : No, it is not. ■ I know what I am talking about. “You don’t” retorted Mr Coates. ' Air Poison: The Government passed legislation making rural advances bonds State-guaranteed bonds, and those bonds are still State-guaran-teed. Mr Coates: Why did you sign the report of the Commission? Mr Poison declared that Mr Stewart, when pressure was brought to bear on him by the Bank of New Zealand after the legislation had been passed, had written across the face of the bonds that the Government did not guarantee payment; and thereby ruined the wM:le lot. Notwithstanding that, the member for Dunedin West had the audacity to say that Mr Poison was responsible. Mr Poison said that although he had been appointed to the Rural .Advances Board to assist in the.administration of the Act, lie had been accused of endeavouring to destroy the effect of the legislation. He bad done his best to assist in building up the system which was a very hue one when it was properly understood. The fact of the Government not standing by the bonds meant that an extra half per cent had to be charged.

i ,Tn reply to an interjection Mr Poison said that the State guarantee idea was recommended- ip every line; of the Commission’s report, but this had not been spotted by' Mr Stewart, in spite of the latter’s reputation for sagacity. However, the passing of the report into law made the bonds 'State bonds. “We deliberately laid a trap for Mr Stewart to walk into,” he added. I “That sounds vvell,” commended Mr Coates. | Mr 'Samuel (Thames): Loyal servants of the Government. Mr Speaker: Order I Order!