FARM MORTAGES.

Auckland Star, Volume LXVII, Issue 104, 4 May 1936, Page 10

FARM MORTAGES.

ADJUSTMENT PLANS.,. based on price guarantee. BOOM PERIOD AfTBBMATH. (By Telegrnp-i.—Parliamentary Reporter.) . V WELLINGTON, this day. Under tile Government's proposals for mortgage adjustments arising out of tlie guaranteed price plan, valuations of ftli'ih properties are to lie based on the price to be paid for primary products and on what an avfel-age man crlh produce under average conditions, according to a statement inade by the Prime Minister, tile tit. Hon. M. J. Savage.

Mr. said that representatives of the foiir State Departments concerned with mortgages had been asked to get together under the chairmanship of the acting-Public Service Cdnimissioner .to See what field staffs Would be needed, wliat valuers they had available a,nd. generally to prepai-c for the time when the revaluation of all sedtirilids oil the basis of a guaranteed price for but' ter would be necessary. He indicated that legislation would be brought down during the ■ present part of the session; and that it was the Government's intention to amalgamate the State mortgages under the Mortgage Corporation of New Zealand, which, like the Eesorve Bank, would bo a Wholly State concern.

At present, the Prilne Minister said, mortgages were based oil butter at 88/ per cwt, but the guaranteed price would be more than that, so actually the mortgagees would be placed in a more secure position. If a mortgagee lent his money at the boom period, he could not expect a farmer or the people of New Zealand to carry that burden for ever. An adjustment had to be made some time, and the new legislation WoUld provide for it to be based on the guaranteed price for butteffat.

The Prime Minister intimated that the bill would provide for tlio State taking over the whole of the private share capital in flie Mortgage Corporation, and the Government would see to it that the shareholders would lose nothing by it.