The Temuka Leader SATURDAY, JULY 18, 1885. CHEAP MONEY.

Temuka Leader, Issue 1367, 18 July 1885, Page 2

The Temuka Leader SATURDAY, JULY 18, 1885. CHEAP MONEY.

Twelve months ago the majority of people langhed at those who suggested the desirability of lowering the rate ot interest, and yet to-day there are many suggestions before Parliament on the subject. This, we think, proves that the subject was not so Utopian as some people thought at the time. Members of Parliament are very slow to adopt new ideas. In their own opinion they are men possessed cd a great deal of worldly wisdom ; leaders of public opiuion ; men who. are the happy owners of a reputation ; and they are always afraid ot taking up anything new for fear of being laughed at. When, therefore, members of Parliament take it into their wise heads to discuss any new subject it may safely be said that there is something in if. It carries henceforth the stamp of the mint upon it, and may be regarded as within the region of practical politics. In the Upper House, on the motion of the Hon. John Bathgate, a resolution baa been earned appointing a Committee to consider how far the credit of the Colony should bo pledged to provide cheaper money for landowner*, and on the motion of Mr .Macandrew a similar resolution has been carried in the Lower House. It is a pity that the farmers of this colony do not know how much they owe to Messrs Bathgate and Macandrew. They have called attention to the usurious rate of

interest which obtains in this colony : they hare made it apparent that landowners are absolutely in need of assistance; and, even if they cannot do more, it will have the effect of checking to some extent the rapacity of our greedy bhylocks, In glancing over the discussion which took place on these motions, there was one thing that struck ns above all, and that was the shallowness and emptiness of the speeches made on both sides. Even the movers of tbs resolutions appeared to treat the subject superficially. The great argument advanced against the State stepping in to assist landowners in distress, as they may well be called, was that if assistance were given to one class it should be given to all. This is the old stereotyped argument, and, no one appears to have answered it satisfactorily. To us the answer appears simple. Landed property is different from any other kind ol property ; it belongs to a certain extent to the Sla e, even though alienated: and consequently the State may well look after its interests. It is substantial and immovable ; no one can leave the colony and take it with him as he can other kinds of property ; and consequently the State cannot run any great risk of a loss in making advances on it. In this way it has a great advantage over the perishable property of the grocer and draper. Lend to the merchant and his goods may perish —lend to the land-owner and his property must remain unchanged. But the great and crowning argument in lavor of State assistance to farmers is that they are the class on whom all other classes are dependent. Land is the source and origin of all prosperity or adversity ; it is from it we get all. whether we dig the minerals buried deep in its bosom, or till its surface, and unless those in occupation of the land are prosperous the colony cannot be prosperous. Reasoning from this point, therefore, it can easily he seen that any assistance given to landowners, is assistance given to every class in the colony, for they are the fountain head of our prosperity, and on ibis ground we bold that the objection referred to is shallow, groundless, and unworthy of men gifted wi'b thinking faculties. Sir Julius Vogel baa a scheme of bis own for the benefit of farmers, and it has now taken the shape of a Bill—Toe Mortgage Debentures Bill. It is a Bill to enable certain companies to issue mortgage debentures founded on securities upon land. The Bill hag only just reached us, and as it contains nearly 100 clauses and occupies 22 pages we have not been able to read it as yet, and consequently we are not in a position to say what its effect would be if passed into law. Above all these comes the question of a National Bank. No thoughtless glib-tongucd legislator can say that this is a class measure, although arguments as frivolous aie sometimes adduced against it. The Hon. Mr Bathgate has introduced a measure for establishing a National Bank of Issue, and has thus taken a step in the right direction, hut we want more than that we want a bank that would break the neck of the unholy alliance which exists between the present bank—» bank that would enter intocompetition with them to some extent and compel them to reduce lheir rates of interest to a reasonable level. We must not be understood to desire that the State should enter into the general hanking business ; on the contrary, we believe it should confine its operations to the accounts of landowners, local bodies, Government, etc. The operations of a National Bank should certainly be restricted to sate business of this kind, and even if it did so much it would undoubtedly result in bringing down the rate of interest all round. Mr Bathgate’s Bill provides that it may lend money on [mortgage of real estate, repayable by way of annuities. That is not enough. It must compete for, and try to get, if possible, all the accounts of landowners, and transact their business, (o be thoroughly useful to the Colony. However, it must not be understood that we wish to throw cold water on the step taken by Mr Bathgate. On the contrary, wo think he baa done noble work ; that the Colony is indebted to him very deeply ; and, though his Bill is not all we desire, we sincerely hope he will be able to carry it through.