FIRM FOUNDATION

Evening Post, Volume CXX, Issue 111, 6 November 1935, Page 14

FIRM FOUNDATION

POSITION OF THE FARMER

Describing the Mortgage Corporation Act as being one of the most important and far-reaching measures ever placed upon the New Zealand Statute Book, the Hon. J. G, Cobbe, speaking at Rangiwahia last night, said that Act. taken in conjunction with the Rural Mortgagors Final Adjustment Act, should place the Dominion farmer upon a foundation so.firm that ultimately he would become the envy of the farmers of other countries. "Both the Mortgage Corporation Act and the Rural Mortgagors Final Adjustment Act," said the Minister, 'have the same object in view, and. as it were, dovetail, into each "other. The one Act cuts away the dead wood of an excessively high mortgage and adjusts the liability of the mortgagor to the basic or real value of the security. The other is designed to provide money at a lower rate than it has been obtainable previously. The result is that when a security is finally adjusted, the mortgagor will be paying a lower rate of interest uoon a lower valuation than before. Although the primary object of this Act is the provision of cheaper money for the borrower, ii has other provisions of • great value. It enables the farmer to borrow on 3 repayable or table mortgage for 'a period up to fifty years. One' great difficulty at the present time is in connection with the renewal of mortgages. Most mortgages are for five years, and. as the end of that timp approaches, the borrower has great difficulty and incurs considerate p- Xpense in obtainina a renewal. This Act does away with all that. The principal sum owing may be reduced or paid off in full on any date when an instalment is due. It is unlawful for any person to demand or charge any procuration fee in rp°r>ect of any In^n obtained from the Corporation. Tlip money will be advanced to farmers at 4 1-8 per cent., which, with the longterm sinking fund, will mean an inI elusive rate of 5 per cent. It is a fact that cannot be dewed that the legislation of the prespnt Government has already brought down inte'i'esl rates to a figure never known before in New Zealand."