HON. T. MACKENZIE'S REPLIES TO CRITICISM.

Otago Witness, Issue 2892, 18 August 1909, Page 53

HON. T. MACKENZIE'S REPLIES TO CRITICISM.

Interviewed on the 10th by a Times reporter, the Hon. T. Mackenzie bi ieii y replied to the critici^in mode by a banV manager in Auckland of his FWitement ar Palmerston North on .Saturday night v-> to the finanoial position of the Dominion.

The first 6tat-emcnt in this criticism which the Hon. I\lr Mackenzie 'leak with vas that the exc.-Sa of oxporta over imports, as compare-d with last jcar, apr-cjr-^rl to be imaginary. "My leply to that,' 1 taid tho Minister, "' is that it ie puielv a qu?.= tion of fact. There was no imaginat on about it. When I stated that thoiv \\a-> << surplus of exports over imparts foi the half year ended June 30, 1909. equal to 5£ millions I v^s quoting th<? figures that were supplied to me by the Dcpartir.cit of Industries and Commerce. 1 find, however, that the exact figure" aio £5,503.030. so that I leally sligljrly iindsr&ru'od the position. On the tii.csnon of tho bank 8 licing eaJKnl io the extent of ri-emh £<r,000.000. I fiM that the leu-ling authoi.tj on commercial and rrjda qrc.;!kir.-s p:il:-

HsrHxl this month, in it--, voiy (hrt ait.c'j dealing with i.h_> financial ."Tuatlon, inffi tion-s the c-asinpr i-> tha batik: tig irosition. ' and states that tbo nia'kor hu^ b^ti lrlaxoc to a very con i -id<?r.i'"i ri o'.t -r.t —to 111m 1 extent I believe, f-pcaking fio;o memory, of £3,891.000, which approac-lx?- closely my estimate of ncaib £-?,CO3.GC3 Of co;ir.-o the authority I re for to doc-- not say that the market ha-3 been relieved to that *x- j tent. It has been relaxed to that e.Ntanfc but later on — I am still speaking from j memory— it says that the customers of the !

banks must have felt considerably benefited. I consider that the northern bank authority who has replied to me ha^ been wise in suppressing his name, because it would have affected very much his reputation as a student of current events had he revealed him-^lf as questioning the accuracy of my remarks regarding tho surplus of exports over imports, and attributing them to a ra-ere- figment o£ my imagination. Regarding the casing of the money market, I s-ee that he acknowledges that matters are better for borrowers, but he says that large sums are still difficult to secure at a low rate of interest. I travelled south on the occasion of my present visit here with a " real " banking authority, and he spontaneously expressed his approval of my speech and stated that he had now £100.000 available for investment. I am aware that there are those who have money to lend, but are using the supposed depression in order to exact high rates of interest for their money, which may be all right from their point of view, but it is my duty as a Minister of the* Crown to state obvious facts to the people, which are that we are on the up-grade, that we have turned the corner, and that with public and private economy, and the great surplus we. have in our produce, amounting as it has to nearly £1,000,000 per month for the past six months, there is no reason why ample funds should not be available for all legitimate purposes at reasonable rates of interest, and that in the not far distant future money-letnde.rs who have been grasping their 8 and 10 per* cent, for interest out of splendid securities will find- their occupation missing. '