TE AWAMUTU.

Waikato Times, Volume XXXVII, Issue 2999, 3 October 1891, Page 2

TE AWAMUTU.

Turku is one point «r plank in Mr Murray's platform that I have heard 110 comments upon ; why I cannot tell, except that the absurdity of the whole scheme is so great that no one takes any serious thought of it. I refer to his proposal to limit the rates of interest on mortgages to five per cent, and to make it unlawful for the mortgagee to call iu his money so long as the interest is paid. How ha intends to get any one to lend on these terms I do not know, and Mr Murray does not seem to know himself, 11s he his never explained. It simply means that money will leave the Country, and become so scarce that those wanting t:) borrow will have to agree to pay a higher rate, and then the statute will he a"dead letter. Tho rate of interest is fixed by the law of supply and demand, like the price of anything else, and io would be just about as possible to fix the pi ices of produce by Act of Parliament. Of course we all know the facility with which Waikato farmers could borrow on their properties in years past has caused a great amount of the depro-sion, and the farmers, burdened with heavy sums, principal and interest have had oither to struggle on just existing or else throw up the sponge or rather the farm. But the mortgagees are not to blame for this they are rather to be pitied. In most cases the lenders have reduced the rates to meet the times, and this is tho way matters iike this should bo arranged, manfully and reasonably between borrower and lender, and not by grandmotherly legislation. But besides its absurdity the scheme has a far worse aspect, it is so unjust. Vor the law to say that a man who has borrowed on some poor security at 10 per cent, need m future only nay live, and need not repay the loan so long as he pays interest at this rate is an unwarranted interference with the freedom of contract. It is tho legislature teaching the people to be dishonest, teaching thein to break their word, to think lightly of solemn obligations, teaching them to retain money to which they know they have no right. It is the same vicious principal or rather want of it that we hear advocated everyday. We see it in the Liberal proposals of confiscating estates and divide among the masses, taxing tho bond-holders, putting penalties oil absentees. The tive percent, would be paid for about a year when some embryo Liberal statesmen would make the discovery that this rate was oppressive and would suddenly lay before the people a much better and far more liberal plan—make it illegal to pay interest at all. Never mind the poor widow with her husband's life insurance money invested on mortgage, serves her right, it is not fair that she should have money to lend at all. This brilliant idea takes with the people and members aro returned pledged to vote for doing away with interest. And so the fuu would go on. A little less Henry George and a little more of the eighth commandment would do this poor fad-ridden country a wonderful amount of good.