Mr Montgomery Opposes Borrowing. [BY TELEGRAPH.— PRESS ASSOCIATION.]

Te Aroha News, Volume III, Issue 150, 17 April 1886, Page 5

Mr Montgomery Opposes Borrowing. [BY TELEGRAPH.— PRESS ASSOCIATION.]

CnitisTcnuiicii, April 14. Mr Montgomery, M.H.R. for Akaroa, addressed bis constituents at the local Oddfellows' Hall last night. After reviewing the [work of last session, he expressed himself as opposed to increased taxation on the necessaries of life. He asked those who had property, was taxation not sufficiently high ? But those who had to buy the necessaries of life, ho would ask if they could afford to buy more ? He thought that a very large reduction could be made in the departmental expenditure. He did not -want to see men under-paid, but he would put on pressure as far as he could to reduce the departmental expenditure by £100,000 to £120,000. The borrowing policy was a dangerous policy, and it would land us in far worse depression. When men that were prudent warned the Government years ago that large borrowing and lavish expenditure would bring about depression, tney were considered croakers, but the result justifies their fears. It was only by prudence, economy, and a return to simplicity of living that prosperity could be established. All the talk to the contrary about the big loans and their results was a bubble, and when that bubble burst it would land us in greater depression, at a time, too, when those who advocated them would, perhaps, not be here. The former loan had induced speculators to purchase property to mortgage it heavily, expecting a profit, and a constant l'ise in value, with the consequence that they now had to send every year three million out of tho country for public and piivate debts. Could so small a popula tion do that without feeling it ? Yet some said more should be borrowed, with the hope that something grand would come out of che expenditure. He would oppose the large borrowing and rapid spending policy. He admired Mr Stout's condemnation of the extravagant scheme of borrowing, because it showed that the Premier recognised hi 3 position as leader of the Government, and if he (Mr Stout) remembered what he said in his speech when the House met, ho (Mr Montgomery) would give him a hearty and generous support. The Otago Central, the North Island Trunk and the West Coast Railways he would put on a pa", but if the colony could not afford to go on with those lines without extra taxation he Avould say, " Waitj'don'fc make them at all." The borrowing power of New Zealand should bo measured by the reduction of departmental expenditure. That should be the way to find the interest on loans, therefore those who wished to see tho lines completed should go in for retrenchment. He was strongly in favour of settling people on the land by the Auckland homestead system, which was the law of the land, but inoperative in regard to Canterbury, at all events. He had hoped the Minister of Lands would have administered the Act as he found it, but the land at present open for selection was too high A place should be open for the cost of surveying it. As to perpetual leases, they were a delusion and a snare. What people instinctively wanted were freeholdsi He concluded by repeating that he would set his face against borrowing and rapid expenditure. A vote of thanks and confidence was carried by acclamation.