OBJECTION SCOUTED

Sun (Auckland), Volume III, Issue 669, 22 May 1929, Page 6

OBJECTION SCOUTED

BORROWING WITHIN THE DOMINION FARMERS REPUDIATE REMIT An objection to the Government borrowing within the Dominion—except for State Advances—was voiced at the Auckland Farmers’ Uunion Conference yesterday, only to be thrown out in convincing fashion. YLN behalf of Kawhia South, Mr. Miln moved that, except for the purposes o-f State Advances, This conference objects to the Government raising loans in this country, as such loans absorb capital which would be available for rural investment, and tend to raise the interest rates on rural loans. He said that a hint was made that the Government intended'raising such a loan for a considerable amount. This would have the effect of keeping up interest rates for the farmer. This was not a good thing, as the time seemed propitious for the farmer to rearrange his mortgages at more favourable rates. Mr. Harcombe seconded. Captain H. M. Rushworth. M.P., explained that the Government’s policy was to raise money in the most favourable market —in New Zealand or abroad. Mr. Miln thought that raising money in the Dominion would eat up the little money that seemed available for rural investment, and the farmer would be hard put to it to raise money. Mr. Harkness supported the idea of raising money in New Zealand, as it was not advisable to increase the national debt by investment overseas. The carrying of such a remit would have a far-reaching effect. Mr. Harding stressed the fact that New Zealand did not send money overseas, but sent goods and received goods in kind. Mr. McCready denied that money had ever been cheaper in New Zealand than abroad. Mr. R. H. Feisst (Cambridge) thought that the conference would be well advised to leave the remit out, as it might have a very serious effect in the future if passed. Mr. Cookson held that no person should be debarred from deciding as to how to invest his capital. Mr. A. 13. Robinson thought that the remit would have an inimical effect on agricultural banks, which were keenly desired. The remit was lost by an overwhelming majority.