Page 2 Advertisements Column 2

Temuka Leader, Issue 1199, 3 July 1884, Page 2

TO THE ELECTORS OF GLADSTONE. | GENTLEMEN,— I beg to offer myself as a Candidate for the representa- j tion of your Constituency in Parliament. Major Atkinson attributes the Depression to extravagance , Sir Julius Vogel to want of confidonce in ourselves. I say the cause ©f it is that farmers, in their desire to secure homes, bought land too dear, and afterwards had to mortgage it for as mud) as it was worth at too high a rate l of interest. Since then prices have come down, and now they find it difficult to pay interest on their borrowed capital. The money which farmers would spend with tradespeople is going into the pockets of a few money-lenders, not for general circulation but for reinvestment in land on similar terms, and hence the depressed condition of trade. The prospects of ever getting high prices for grain are not bright, and, consequently, while farmers are kept crushed down by the overwhelming weighi of an exorbitant rate of interest I cannot see the slightest hope of prosperity, since our whole dependence is on the land. There is a combination amongst the Banks to keep up the rate of interest, and thus they and 1 the moneyed classes have secured a monopoly. It is to bring down the rate of interest that attention should be directed, and the way to do it is this : —By the Charters of the Banks they are allowed to issue three pounds in paper to every pound in coin they possess ; that is, threefourths of their money may be paper and the other one-fourth current coin. If it is considered safe to allow Banks to do this, no man can maintain that it would be\rnsafe for the Government to do it, and I therefore propose that the Government shall establish a Bank of its own ; borrow one-fourth of the sum necessary to taKe over the mortgages on land, issue paper money for the other three-fourths, and lend the money to the farmers at 5 per cent. The security of the existing Banks is the limited liability of their shareholders ; the security of the Government Bank would he the lands of the colony. As I ask for the latter only the powers given to the former, my proposal must be reasonable and safe. The effects of this would be : Ist, to secure to fanners an enormous sum annually ; 2nd, to release and put into general circulation the money now locked up in freehold securities, render money plentiful, and bring down the rate of Interest; 3rd. to secure to the State enormous profits, which would help to lighten taxation ; 4th, to stimulate trade and commerce ; sth, to promote local industries through money becoming so plentiful, (hat its owners would find a necessity for investing it; 6th, to keep within the colony vast sums of money going out of it now in the shape of interest; 7th, to give a death blow to an exorbitant rate of interest; Bth, to regulate the money market so that Banks would not be pushing money on people when they had it plentiful and putting on the screw when hard times came; 9th, to secure power to the Government, so (hat the money-rings could not resent any curtailment of their privileges by crushing the people, as they did in Victoria a few years ago ; and, 10th, to establish prosperity on a fiim and permanent basis. How to effect this is;—lst—Buy out the Bank of New Zealand, take over its officers and place it under the direction of a Board independent of political influences, and thus the machinery would at once be in working order. As Government and farmers’ accounts are that Bank’s mainstay it would be most willing to sell when these were taken into the Bank 1 propose. As its property consists of cash (about one and a half millions) and buildings there would be no difficulty. 2nd. —Restrict the Bank to the accounts of farmers, local bodies, etc., and leave merchants and tradesmen to other Banks. This would induce the other Banks to carry on business and obviate the necessity of having much to do with foreign exchange. If these Banks attempt to bring discredit upon the paper money, refuse to renew their charters or cancel them altogether. That would make veiy agreeable neighbors of them. 3rd—Make the paper money a legal tender within the colony. 4th—Enable farmers to pay off their present mortgages and borrow from the Government Bank, The resources of such a Bank would be enormous. Its capital would be one-fourth in gold, and it would have, to work upon the revenue, the Post Office Savings Bank, and the Insurance Department moneys, local bodies’ moneys, farmers accounts, etc, etc. The profits of such a Bank would soon wipe out our national debt. To settle people on the land, let the Government buy five or six acres from the present owners, and lease them for life at a rental of 5 per cent, on the purchase money to agricultural laborers desirous of settling in such homes. Keep such homes 200 acres apart, and render the leases terminable on the tenant being convicted of certain offences against his neighbors. The latter provision would be necessary to enable farmers to remove bad neighbors. This would give farmers the advantage that men permanently settled in their midst and dependant on them, would work more deligently and better than comers and goers ; that they would know whom they were employing, instead of having to take, sometimes, doubtful characters under their own roof ; and that they would have efficient labor always at hgnd. The laborers, instead of paying 10s a week in towns for houses, would get six acres of land for about #3 a year, where they could work when unemployed and bring up their children accustomed to country life. The unfortunate single men, who now ruin themselves owing to a want of a home, could settle on these plots and marry. I have some other schemes 1 immatured yet for the want of information which I hope to get soon. Legislation has been running so long in the same ruts, that it has sunk very low into the mire, so low that any one may be pardoned for offering new suggestions, and making an effort to get this—the finest and most frurtful land—out of her present difficulties. If these suggestions meet your views i am ready to represent you ; if not, I have no desire for parliamentary honors at present, and my only object in coming forward is to bring these mutters into public notice. My views on general politics are liberal. As my business depends mainly on farmers they will recognise, 1 trust, that my interests are indentical with theirs.

J. M, TWOMEY. Leadek Office, Ternuba, June 23» 1884. j u 2