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Hokitika Guardian, 22 February 1933, Page 4

In the course of an address to his constituents, Mr -It. G. Menzies, AttorneyGeneral in the Victorian Government, said that when the Financial Emergency Act of 1931, which, among other things, reduced mortgage interest, was passed, lie opposed that section of it, because he believed that such interference with private contracts would retard economic recovery. “When 'the Argyle Ministry brought in a bill last session designed only to get rid of certain anomalies,” Mr Mcnzies proceeded, “a concerted rush was made by those- members of the Country Party not in .the Cabinet, and the Labour Party, to insert in the hill provisions automatically reducing interest on renewed mortgages. If Parliament is going to come along once a year to alter existing contracts, how long are people going to make contract:: ? In New 'Smith Wales, I have been told, where they have gone further in these matters, as much as P 5.000.000 a month once flowed into tjhe ntoiyg.ige market. To-day that sum had dwindled to £400,000. How are the premie who must borrow money going to fare if v,o adopt a legislative policy that will prevent them from obtaining money? If I wanted to introduce the icomplete Communist state in Australia, and if I had the power of Mussolini —as I frequently wish I lied —I would simply wipe out every existing contract in the State. The right way to get interest rates down is to persuade members that their money is safe. will have an

opportunity in the next few years to see, I liqpo not too tragically, how some of the brilliant theories that have been expounded work out."