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RATES OF INTEREST TO BE DISCUSSED Questioned on what the Govern- ment had in mind regarding interest rates, Premier Henry assured The Globe that there was no intention to embark on a refinancing policy. Neither, he declared. was it the an- nouncement of a. policy to cut the interest rates on deposit with Province of Ontario Savings branches. Other notable items in the Speech were one directing public and expert attention to a. study ot prevailing rates of interest; the effort of the Government to pursue a policy of re. trenchmvont: omclal announcement of redistribution of the House: and ref.. erence to proposed legislation to etree. a further moratorium for the benefit ot home owners. An Indication of how a township will benefit by lower taxation is cited in the one a municipality which would hove an assessment for public school purposes ot 8500.000 and has five schools within its ecnfines, with a first Principal teacher and second Principal teacher in each. The equal- ized assessment would bring each school board within the 8100.000 rat- ing tnd, ITyltt effect a net saving on (rink toward the ten teaetieri"saT who of 82.500. In the lower classed assessment rat- 1.ttgrnplt where a dlstrlct wculd be paying a teacher's salary less than the amount ot the grant. no change would be effected as the School Inspector's approval would not be given for the grant. A general inellnr.t'.on ct school bards to reduce salaries. coupled with the intention ot the Government to disallow school sections to build up surpluses at the expense of the ratepayers, brought about the need tor the statutory changes. the Premier There is a gosd likelihood titat' Ichaol sections clusrd in the same-i ment rating from $00,000 to 3100.000; and those. from 340.000 to $60,000 will I um be affected through a grading down of the tcwnship grants. Mr. Henry said in supplementing the brief tttttmation contained in the Spscch. Need Eprlncd. F Proposed legislation to lessen taxa- tton tor public school purpcscs in tonuhips. was one of the teaturs forecast in the Speech trom the Tlmme " the opening of the Legisla- ture yesterday. Under planned amend- ments to the Public Schools' Act, township: now paying 8600 and $400 in mats toward first. and second Principal salaries. will be authorized to cut. the payments to $450 and 8300. respectively. where the school sentient has at equalized assessment. of 6100.- 000 or more. Cites. towns, villages and union school sections do not come under the plan. Premier Henry told The Glcbr. Amendments to Act Pro- vide That Where School Section Has Equalized Assessment of $100,- 000 or More, Certain Grants May Be Less- ened Township Taxation Applying to Schools Cut by New Laws The Ontario Hydro's reserve of 862,- 500,000 was mentioned to show the good financial standing of this public- ownership enterprise. and the judicial inquiry was dismissed with the in. formation that the already published report would be laid on the table ot the House. Every department will bring down a comprehensive statement of pro- posed lessened expenditures for the current year at Budget time, the Pre- mier said, when asked what further economies were planned similar to those announced by the Department of Education. where approximately $1,250,000 will be saved by cutting legislative "ants P.trrtye1f.. ' "n "We may be willing to follow the lead it other banks, Federally con- trolled. cut their rates," he said. "but I think we went far enough when we reduced the rate to its present 3 per cent. point to coincide with theirs." Mr. Henry declared that the refer- ence to interest rates, therefore. was made only with the intention ot 'tkeeping the question before the pub- lie." Ebruory