The Temuka Leader. TUESDAY, FEBRUARY 17, 1885. STATE BANK.

Temuka Leader, Issue 1304, 17 February 1885, Page 2

The Temuka Leader. TUESDAY, FEBRUARY 17, 1885. STATE BANK.

When the Rev. T. Jasper-Sraytho pro raulgated the scheme of borrowing money at 4 per cent, and lending it at 5 per cent, we pointed out that it could not be done, and when a copy of Mr J. H. Newlyn’s pamphlet, which advocated a similar scheme, reached us, we suggested to Mr J. H. Newlyn the advisability ot adopting the National Bank scheme. In our review of his pamphlet the following appeared ; —“ We trust “ Mr Newlyn anl his friends will apply " their talents and energies to a Na- “ tional Bank, and give up the idea that “ the State is going to back their bill. “ Under Mr Newlyn’s scheme, money “ could not be lent at less than 6 per cent, “ but if a National Bank wereestablished “it could lend money at 4 per cent, ‘‘easily.” But Mr Newlyn did not take our advice. He still persisted in putting his own scheme forward, and it attained considerable popularity, because people seemed to be able to understand it better than the National Bank proposal. Men like Mr John Bathgate and Mr Macandrew, however, took not the slightest notice of the money-lending scheme while they at once adopted the National Bank proposal, Mr Newlyn still continued his work. He lectured m various parts of North Canterbury with the result that committees were formed, and that (he movement has now assumed a practical shape. The followletter appeared in the Christchurch papers yesterday : THE NEW ZEALAND STATE BANK LEAGUE. TO THE EDITOR. Sib,— About the middle of last year, at the suggestion of Mr J. H. Newlyn, an Association was formed at Pendarve o , under the title of the “ Colonial Land Association,fcr the reduction of mortgage interest rates. Mr Newlyn published a pamphlet on the subject, which did much good, in so far as it drew public attenlion to the fact that the cultivators of the soil are suffering severely from the very high rate of interest which money-lenders charge for the loan of money ; but the pumphlet does not lay down any definite scheme for relieving the pressure under which the landowner is suffering. Mr Newlyn kindly came to this district and delivered two lectures on the subject of cheap money, when a Committee was formed to, if possible, carry out this gentleman’s views. This Committee soon found that (hey required a definite scheme of action, and did themselves the pleasure of communicating with Mr J. Macandrew', M.H.R., on the subject of cheap money. That genthman immediately replied, and gave the Committee some valuable information and suggestions, while at (he same time he put the Committee into communication with Mr John Bathgate, who also gave the Committee the benefit of his able assistance and sent some copies of the truly exhaustive lecture on a “ State Bank of Issue,” which he delivered in Dunedin in September last, and which this Committee would most strongly recommend to the perusal of all who feel an interest in the subject. After several communications had passed between this Committee and Messrs Macandrew and Bathgate, the Committee came to the conclusion that the only prospect of reducing the present rate of interest is in urging the Government to establish a State Bank of Issue and a Government Lmd Bank, After mature deliberations the Committee formed here decided to adopt the name which Lends this letter, and by which it will henceforth be known. Mr Macandrew, in his place in Parliament, drew the attention of the Government to the advisability of establishing a State Land Bank. Mr Bathgate, in his lecture, points out the necessity that exists for establishing a State Bank of Issue.

The New Zealand State Bank League now call upon all who feel the pressure to come forward and give their cordial support to Mr Macandrew', Mr Bathgate, and the League, who are ready to do their utmost to carry out the scheme, which is of such vital importance to the country at large. The League proposes, if practicable, to hold a conference in Christchuich, and invite those interested to attend and discuss the whole matter. Messrs Bathgate, Macandrew and others have promised to attend such conference if possible. Notice of conference will be given when arrangementa are matured,—l am, etc., A. S. J. White, Chairman N.Z.S.B.D. It will be seen from this that the people who have gone into the matter and made the necessary inquiries, have quietly laid aside Mr Newlyn’s scheme and adopted the National Bank proposal. Any common-sense body of men could not do otherwise, One is thoroughly practicable : the other is impossible. It is impossible to borrow money at 4 per cent, and lend it at 5 pei cent, profitably and consequently it is well that such an idea should cease to distract public attention from the only real remedy for removing depression. Still Mr Newlyn’s work must not be underrated. He has worked persistently and well, and there can be no doubt but that the formation of the National Bank League is in a large measure due to bis efforts. The formation ot the League is a matter that gives us much pleasure. We have persistently advocated it, and we may well be pardoned if we feel a little pride in seeing our proposal triumphant at last, One thing, however, is noticeable, Mr Twomey is the originator of the Bank Scheme; he has spent money in putting it before the public ; he has'frequently written letters to the Christchurch and other papers advocating it; yet the Chairman of the

New Zealand National Bank League in the above letter completely ignores him. However, there is one satisfaction. If Mr Twomey is not worth taking any notice of, his ideas are, and it will come to the same thing in the end. The practical common-sense proposals which Mr Twomey enunciated must eventually triumph, and secure for him a share of the credit attached to them, despite the efforts of those who are trying to shut him out. One thing we should like to see done is this district now: We should like to see a branch of the Bank League formed here, so that if a conference t ike place in Christchurch, or elsewhere, delegates may be sent to it to represent this district. Public opinion in this district is almost unanimously in favor of the proposal, and we believe that it requires very little effort to get a society formed. We hope the matter will be taken up as soon as possible.