Parliament.

Manawatu Herald, 22 September 1894, Page 2

Parliament.

HOUSE OF REPRESENTATIVES. Wednesday, September 19. The Speaker took the chair at 2.80 p.m. Leave of .absetace for ten day Was granted to Mr Ropata te Ao; The Government Railways Act Amendment Bill wag read a third time, and passed. The Rating Bill was committed. After discussion and many amendments proposed and lost the Bill was then read a third time and passed. The Lands Improvement and Native Lands Acquisition Bill was read a first tiuis. The Colonial Treasurer proposed the second reading of the New Zealand Consols Bill. He pointed out the difficulty under which not more than £500 could earn interest in the Post Office Savings Banks, and said that by this Bill building societies, friendly societies, and other such institutions would be enabled to invest money at interest in sums of over £500. It was also desirable to keep money in the Colony which was now sent abroad. One of the purposes for which the money cculd be judiciously used would be in paying off Treasury bills as they became due. The maximum amount of interest to be paid was 4 per cent, but if the Government could raise the money at a lesser rate than that, they would do so. It had been urged against this scheme that it meant borrowing. To that he replied that the British consols amounted to £525.000.000, so that it would be seen that this form of investment was in Great Britain regarded as in the very first class. Dr Newman predicted that the people of the Colony would be wringing their hands with grief at the result of the Government policy. He would certainly oppose the second reading. Sir R. Stout said that with -the Bills already passed and those promised, they were committing £he Colony to borrow five millions and a quarter for this year. He pointed out that the Bill, by encouraging people to invest in consols instead of lodging the money in banks, would deplete the banks and cripple industry. The present was a graver financial crisis than any since he had come to the Colony. The Premier would not have expected the senior member for Wellington to appear as an apologist for financial institutions and syndicates. Such a Bill as that now before the House was necessary in the interests of the Colony. Large sums were withdrawn from financial institutions in this country during the disasters in Australia, and were now tying dormant, to reappear directly .the consols scheme became law. Captain Russell said it was amus» ing to hear the Premier talk about Sir R. Stout being the apologist for syndicates and financial institutions, inasmuch as he was the leader of a Government which had done more to bolster up banking institutions than any Government that had ever sat on the Treasury benohes. He described this Bill as a perfect monstrosity. The proposal was really the worst form of borrowing, to give the Colonial Treasurer a million to squander in any way he chose. The borrowing policy of the present Government was absolutely destructive to the Colony, and he believed that if they went much further in that direction the credit of the Colony would be absolutely damned, and repudiation would be the word that would be used. He moved an amendment, " That it is not desirable by the New Zealand Consols Bill to still further extend the policy of borrowing in direct contravention of the will of the j country as declared at the last general election." Mr G. Hutchison seconded the amendment, and strongly condemned the Bill. The Minister of Education announced that the Government weuld . treat his amendment as hostile. If I this Bill were not passed, it would not make the. least difference in the 1 amount of money to be raised. It

was idle to day that if they raised money by consols instead of by Treasury bills the indebtedness of the Colony would be increased. Mr Buchanan characterised the speeches of Ministers as nothing but an exhibition of floundering* He bad been returned pledged against aborrowing policy, and he did iidfc know how Government, aupfeorters similarly pledged could vote for this IJill. He warned those members "^ that a day of reckoning would assuredly come. , v Mr G. W. Russell said this Bill would mean to the Colony a policy Of progress. Mr Bell said tbat thost who Were declaring that this was hot bo&qwingi were treating tijettibers jetSj if I the*" were a lot of children. This would * mean a sum of one million added to the permanent debt of the Colony to meet the needs of the Colonial Treasurer, and was really a million in addition, not in substitution. Nothing of this magnitude Was ever proposed before; Mr Crowther bould i?ot get out of his mind the Conviction that thejf ' Were going too far in this Btsbetitoi The amendment proposed I>y ° Captain Russell was lost by 88 votes to 16. The following is tbe division list :— For the amendment, 16, — Bell, Buchanan, Crowther, Earnshaw, n Fraser, Harris, Heke, G. HutchisonsLang, Massey, Mitchelsqn, Q'Re'gan, : Captain Russell* Saunclers, G. J. Smith and Wilson 1 . .; "', .'.; Against the amendment, 88.— Buddo, Buick, Carneross, Carnell; Carroll, Collins, Flatman, Graham, Elall, Hall- Jones, Hogg, HouatoDw, W. Kelly, Larnach, Lawry, Masliriv \ McGowan, J. McKenzie, MoLaehlan, ' R. McKenzie, MeNab, Meredith, Millar, Mills, Montgomery, Parafa, Morrison, Pinkerton, Reeves, G. W. Russell, Seddon. E. M. Smith, . Stevens, Steward, Tanner, Thompson, Ward, Willis. Pairs.— For the amendment : Green, Allen, Button, Duthie, New* man, J. W. Kelly, Te Ao, Stout. Against the amendment : Mackintosh, Cadman, Pirani, Joyce, Wi Pere, Guinness, W. Hutchison, Duncan. The debate was adjourned on the motion of Mr Montgomery. The House adjourned at 1.20 a.m.

Thursday, September 20. The Speaker took the chair at. 2 30 p.m. The debate on the second reading of the New Zealand Consols Bill was resumed, and after a long.debate : thf Bill was read- a second time on- * division by 89 votes to 28. The Foreign Insurance Deposits Bill was read a second; time. The inspection of Machinery Bill was committed and read a third time and passed. The School Attendance Bill was read a third time and passed. The Licensing Bill was committed . and progress, reported. , . - The House adjourned at 2 a.m v :