34 QUEENSLAND AGRICULTURAL JOURNAL. {1 Juny, 1901. 
less to pay for mozey, that indispensable article would be in greater abundance, and, in 
response to its greater sufficiency, wages would he higher and prices increased all round. 
This, I take it, spells prosperity. Cheapness of living is always associated with a low 
standard of life. Anyone disputing this is free to experiment in a blackfellow’s 
camp. 
Our capacity for production is absolutely boundless. It only wants a sufficient 
stimulus. Consumption is that stimulus ; and consumption is without limit so long as 
the ability to buy is with the people. 
It has been contended of late years that the function of issuing notes, passing by 
delivery as money, should be reserved for the State, or for some institution controlled 
and directed by the State. It is obvious that the State could conduct the paper 
money business on a far smaller gold margin than the private banks; and it might 
also be granted that financial panics—with their slow martydom of recovery—such as 
we have had bitter experience of in the past, would be looked upon as events that 
could not in any conceivable way recur again if such an institution were established. 
There is no more need for us to confine ourselves to the crude ideas of our grandfathers 
regarding the banking system than there is to retain their means of locomotion or 
their rude appliances in agricultural industries. 
Progressive doctrines are now universally received that fifty years ago would 
have been laughed atas “ the impractical theories of visionary dreamers.” Experience 
has taught us that any legislative body with the lawyer element predominating is 
notoriously hidebound in the absurd conviction that reform means revolution. Lawyers 
can only appeal to usage, precedents, authorities, and statutes. 
; Have we any Jonahs on the ship of State that want throwing overboard? “ What 
‘meanest thou, O sleeper, arise,” was the prelude to the defaulting Hebrew of old being 
cast forth into the deep; and to those who may be asleep on the State ship we say 
“ Arise, rouse yourselves, and be awake to the greatness of your responsibilities.” 
DISCUSSION. 
Mr. T. pe Murnray-Prror (Maroon): I am very pleased that Mr. Moffat 
has taken up this subject of cheap money, as it is one that I am interested a 
good deal in, and [remember many years ago taking my friend, Mr. Riithning, 
up into our district, where he lectured on the credit foncier principle. I was 
in hopes then that some system of cheap money for producers would have been 
initiated long before this. I can speak of the trouble of having dear money, 
and for many years I had to pay 8 per cent. myself. I can remember, too, 
when 10 per cent. was thought a very moderate interest. We are now ina 
very different state, and, as trustee of an estate, I find great difficulty in getting 
over 3 per cent. The banks are giving 33 per cent. in some instances, yet they 
are lending money out at about 6 per cent. to producers. Some means ought 
to be devised, if we as a people could put our heads together, by which money 
could be made cheaper to the producer—that is, to the small farmer principally. 
The credit foncier system is the one that appeals most to my mind, but any 
system in which the principles are sound, could be initiated in this State with 
great success. That is, money should be lent at not over half the value of the 
property it is lent upon, and that 1 per cent. should be charged over and above 
the interest charged as a gradual wiping off of the mortgage. That would be a 
sound principle, and I am confident that if we could get the credit foncier 
system established under Government supervision, it would be a great aid to 
men who want to lend money. It would be a great thing if they were assured 
of a fair interest, and knew they were lending their money with safety on our 
own land and amongst our own producers. 
Mr. I. W. Perk (Loganholme) : I was very interested in Mr. Moffat’s 
paper, especially in his remarks having reference to the credit foncier system. 
Some of you are aware that at the Mackay Conference I wrote a paper dealing 
with what I called an Agricultural Bank Bill. I have not seen any reason to 
diverge a point from what I then said. Mr. Moffat referred to the need of 
organisation to reduce the rates of interest. I say what we want is an 
organisation among the farmers to start co-operative banks. In the co-opera- 
tive bank is to be found the secret of success for our farming community: 
The credit foncier system was organised by a band of co-operators. Highteen 
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