MORTGAGE MONEY.

Auckland Star, Volume LXIV, Issue 135, 10 June 1933, Page 7

MORTGAGE MONEY.

INVESTORS WARY.

EFFECT OF LEGISLATION

MR. DOWNIE STEWART'S VIEW

(By Telegraph.—Own Correspondent.) DUNEDIN, this day. Speaking at the annual meeting of the Perpetual Trustees, Estate and Agency Company, Mr. Downie Stewart, M.P., said he was surprised, when he returned from England, to find that the legislation had been amended to include con-

tracts and mortgages entered into after tho date of the previous Act, and there was no doubt that investors were led to believe that tho legislation would apply only to those mortgages then in existence, and that as little as possible would be done to discourage future investment in land. ' . ' - Tho wisdom of tho alteration was more than questionable, as it created a feeling of insecurity in tho minds of people willing to invest in mortgagee. The effect of the, legislation had been to discourage Investment in mortgages, and, of course, there was also the further factor at' work that it was very difficult to persuade people to invest money on security where there would be no clear evidence, o.wing to , the enormous drop in national income and the prices of farm products, that the security'would be safe. That factor, as well as the legislation, had undoubtedly helped to dry up the sources of mortgage money.