QUESTION OF CONTROL

Evening Post, Volume CXVIII, Issue 65, 14 September 1934, Page 16

QUESTION OF CONTROL

MORTGAGE . CORPORATION

STATE APPOINTMENTS

Brief rcfovcueo to tho proposed! National Mortgugo Corporation was niado by the Minister of Financo (tho Kt. Hon. J. G. Coatcs) in tho Houso of Representatives yesterday afternoon during his spocch in reply to tho Budget debate. The Minister .also dealt with tho question of control, but his remarks did not give any indication1 of ' Government policy. Mr. Coates said that tlio corporation would mean that tho mortgagee would havo better security and tho mortgagor would obtain bettor rates of interest;Tho Leader of tho Opposition (Mr. M. J. Savage): Is it tho intention to havo the corporation under State control? ' Mr. Coates: It doponds on what you mean by State control? Mr. Savage; What I moan is this: Is it tho intention of tho Government to havo a majority on tho administrative board? Mr. Coatcs said that all sorts of schemes had been proposed to holp the farmer. It had been suggested that capital should bo cut down, but ho would advise a careful method of approach to such a scheme. It was not his intention to wipe out privato enterprise, but to provido a measure of i security for the investor and thus eusuro a greater flow of, investments. At tho present time the banks and investment companies wero embarrassed by the volumo of deposits, and-tho corporation would provide an avenue through which niueh of this money could bo invested. Tho market would test out what- tho farmer -would have to pay for his money. Tho mortgagee would be assured of a return for-his investment and the regular payment of his interest. If tho country was to succeed, the fanner would have to bo placed in a position in which, ho could carry oil. Mr. Savage: Will the corporation be State-controlled? Mr. Coates said that it was obvious that tho Government would, havo to make- somo of the appointments to tho board, but whether tho appointments would be Government officers "was a .matter of policy which had not yet been discussed. Although the matter had not been discussed in detail, he thought that the board would bo controlled by appointments maclo by the State. '