UNEARNED DECREMENT.

Auckland Star, Volume LXIV, Issue 15, 19 January 1933, Page 6

UNEARNED DECREMENT.

The various writers under this head seem to me to be writing from city office chairs and from a purely theoretical knowledge of the position. Please allow me to give a practical illustration. A farm is bought by two men. One is the farmer who puts £1000 cash into it. The other is a "mortgagee," who also puts £1000 into it. The "mortgagee"' by the "law of custom" is protected in writing by all sorts of convictions and penalties; the farmer has no protection —he lias to chance it. It does not matter in the least whether the farm is bought at a high or a low value; both men know the position and both enter with their eyes open. If the farm is over-valued, why the howl about the "farmer" being the fool! Is not the "mortgagee" a fool also, for he has his own valuer and he always counts on. a big margin of safety or he would not put his money into it. If there is any blame, both are at fault, so when a position like the present arises why should not both suffer alike* Why should the farmer lose his all and the mortgagee be saved? Such an argument is inhuman, without the added sneers and gibes at the farmer. WILL A. CARTER.