NEW BUILDING SOCIETY.

Evening Post, Volume CXVIII, Issue 55, 3 September 1934, Page 12

NEW BUILDING SOCIETY.

The National Permanent Building Society; Wellington, has recently been; formed on the lines of those which have proved so successful in the Old Country. An advertisement appears elsewhere in this issue inviting the public to subscribe for permanent shares and for subscribing shares in this new enterprise. The subscribing shares are-repayable at the end of approximately seven years. The directors of the new society are Messrs. A. E. Allison, formerly commissioner Government Life Insurance, Mr. R. L. Macalister, of the legal firm of Messrs. Mazengarb, Hay, and Maealister, Will Appleton, a city councillor and a director of the New Zealand Guarantee Corporation, Ltd., and G. H. Scott,/managing director of the Scott Timber Co., Ltd. A feature of the society's operations is that all shares, whether fully or partlypaid, are withdrawable on one calendar month's notice. To enable this policy to be maintained, the directors state that they intend to keep a reasonable proportion of the funds of the society invested in Government and municipal securities, easily and quickly realisable. It is also stated that deposits accepted by the society will be limited lo one-third of the amount of mortgage assets held, which will be half the amount allowed by the Building Societies Act. This provision is aimed to make the society's financial position safe ancl Jiqttu! in. Umus of depression.

It is pointed out by the directors that section 7S of the Land and Income Tax Act. 1923, expressly exempts income of building societies from liability for income tax. and investments of the society will bo free from restrictions imposed on mortgages executed prior to March, 1931. The provisions of the National Expenditure Adjustment Act, 1932, reducing all interest by 20 per cent, and the mortgagors and Tenants Relief Act, 1933. giving mortgagors right;to apply for relief, will have no operation in respect of advances made.