MORTGAGE RATE

Evening Star, Issue 20118, 7 March 1929, Page 17

MORTGAGE RATE

PRIVATE LENDERS BRING IT DOWN ISpecux TO las ‘ SiiJi.'l CHRISTCHURCH, March 7. Recent statements of a Wellington banker that mortgage rates must fall unless tho Government raises a loan within the dominion were referred to by Mr David Jones, M.P., in an inter'l Mr Jones said that undoubtedly the rate of interest was falling, and it was interesting that leading institutions and individuals, in their desire to keep up tho rate, would like to see the Government borrow in New Zealand. He had stated when speaking in the House on the Finance Rill last session, that the statement by Sir Joseph Ward that he intended to make a complete reversal of his policy and borrow in tho dominion would keep up the rate of interest. It had had that effect, but money was accumulating -again, and it supply and demand were allowed free play, mortgage rates of 5-J per cent, would become general. Some mortgages, said Mr Jones, bad already been arranged at tins The extraordinary thing is that the Government (which may be referred to as a commercial Government) went into office as a cheap money party, and now appears to be playing right into the hands of the moneylenders. No institution that the Government is interested in, or could influence, has attempted to break the present high rate. It is the private lender that is breaking it.”