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Hokitika Guardian, 15 March 1932, Page 4

The members of the Economy Commission agreed to differ on the subject of the recommendations with regard to interest reductions and loan conversions. Mr Macintosh, one of the bankers, protests against a tax on interest which lie considers “confiscation.” This point has been raised again and again, but circumstances appear to alter conditions. Mr Macintosh considers it is an act of bankruptcy to attempt a composition, out it is being clone every day in puoiic business, and even banks are glad to settle “a had debt” by a compromise. What would be more acceptable at the moment would be a writing down of capital values rather than interest rates, but that would be “confiscation” for all time. An adjustment of interest rates for the time being would be the fairest all round, aiid when trade recovered, matters Would drop back to normal. An all round reduction of interest would have Its anomalies, as Messrs Begg and Griffin point °ut, but so will every recommendation of the Commission—the shoe will pinch unduly in some cases. The best that can be done is on general principles and no doubt hardship cases would be dealt with equitably. The losses to Government Departments would be considerable ) upwards of half a million, but the net gain to the Consolidated fund would be £308,507. Much the same arguments apply to loan conversion, but the experience of Australia shows that to he wholly effective, conversion must, be compulsory. Here again, we would have “confiscation,” hut in this matter as in interest reductions, there is the call for sacrifice, and done in a patriotic spirt, it will carry with it real good will and be of immense benefit to the community at large.