SETTLERS' TRIALS.

Auckland Star, Volume LV, Issue 252, 23 October 1924, Page 8

SETTLERS' TRIALS.

SOLDIER AND HIS DEBTS. OBLIGATIONS TO. CROWN. (By Telegraph.—Special to "Star.'") ' WELLINGTON, Wednesday. The Minister of Lands has furnished a reply to Mr. Masters, M.P, who brought under his notice the representations of a soldier settler in Taranaki, that he refused to sign the demand of the Department of Lands that he would not pay private debts in priority to his obligations to the Crown. The Minister replied: "With reference to the representations made by you regarding the declaration asked for by the Commissioner of Crown Lands as to the financial position of those soldiers who give up their farms, I have advised that the mortgagor is liable under personal covenants of his mortgage for any deficiency resulting from the realisation of his security, and before a loss can be definitely written off, in accordance with the provisions of the Public Revenues Act, the Controller and Auditor-General insist upon being furnished with a definite statement as to the means and resources of the defaulting mortgagor. Regarding the complaint that has been made that the form of declaration ties a man down to the extent that, by signing it, he would be prevented from paying his living and personal accounts, I havo advice that it is intended by the declaration that priority should not be given to unsecured creditors over the secured creditor (the Crown) in respect of debts incurred in connection with the farm. The term 'unsecured debt' excludes debts of a personal nature, such as debts incurred in connection with living expenses while on the farm. The Auditor-General has laid it down that payment of moneys due to unsecured creditors in connection with farms shall not be given preference over the secured creditor (the Crown). Possibly the clause of the declaration is not sufficiently clear so as to exempt debts for living expenses while on the farm, but the form of declaration is sufficiently clear to indicate that the soldier is not prevented from discharging debts incurred subsequent to his leaving the farm from his subsequent earnings. I may state that it is proposed to introduce legislation shortly enabling the Minister, on the recommendation of the Land Board, to write off losses incurred I through the realisation of securities, but it must necessarily follow that thorough investigation must be made into a man's affairs before the Land Board can submit such a recommendation. This is only business, and the State must be assured that losses are genuine."