NOT A STATE SACRIFICE

Evening Post, Volume CXXV, Issue 148, 25 June 1938, Page 8

NOT A STATE SACRIFICE

There are at least two parties to every mortgage —the lender and the borrower—and when the borrower, taking advantage of legislation aimed to assist him, receives a reduction in capital or interest the other party to the bargain, trje lender, is the loser. As a result of the operation of mortgage relief legislation, the Wairarapa Patriotic Association has had its funds depleted by £2158, according to statements made at a meeting of the association this week. There is no suggestion whatever that the Mortgage Adjustment Commission which granted the relief to the mortgagors acted unfairly. The commission merely, gave effect to the decision of Parliament. The case, however, draws attention to a point that is often overlooked—that there can be no gain to a mortgagor without a corresponding loss to a mortgagee. On several occasions the Government has taken credit to itself for assisting the man on the land and the city dweller by reducing his indebtedness, but in the great majority of cases the Government's only part has been to provide the machinery which has made the reduction possible. The actual financial sacrifice has been made by the person who advanced money on the security of the land or the city property, and in some cases the sacrifice has proved a very real hardship. In the instance referred to the Patriotic-Association has so much less to use in aiding returned soldiers. The assistance which the Government claims to have given has been at the expense of others.