RURAL LIABILITIES

Evening Star, Issue 22106, 13 August 1935, Page 13

RURAL LIABILITIES

THE ADJUSTMENT METHOD [Per United Press Association.] ROTORUA, August 12. “ Consideration has recently been given by the Government to. the attitude to'be adopted by the State lending institutions under part 2 of the Rural Mortgages Final Adjustment Act, •which makes special provision for the voluntary adjustment of a mortgagor’s liabilities,” said the-Acting Minister of Finance (tbe Hon. Adam Hamilton) to-day. A conference of officials of the Government departments interested was recently held, and was attended by the responsible Ministers, to consider—first, whether it was wise or not to agree to the principle of writing off public funds (representing capital money) by voluntary agreement, or to allow every case involving State money to be decided by. the Court of Review; and, secondly, if considered wise, by what method the procedure could be best safeguarded. It was unanimously agreed that all reasonable efforts should be used by the State lending departments to come to a voluntary adjustment. Arrangements have now been completed as to the procedure to be. adopted in all cases that come under review.

“ The chief difficulty that arises in these times of shifting values,” the Minister continued, “is to find an equitable basis of valuation of the securities that are under consideration. The following has been adopted as a guide to the State departments and the Mortgage Corporation for fixing the value of any rural property:—By assessing the annual gross income that should be obtained from such lands if properly farmed calculated at an average of the prices received by farmers within the particular land districts during the last eight seasons, and thereafter by following the relative provisions of the compulsory part of the

Act. The commissioners of Crown lands and district valuers, together with a local farmer, will act as valuers and advisers. The procedure will be as simple and expeditious as possible. “ If rural liabilities can be adjusted on these lines,” concluded Mr Hamilton, “it is considered that the farming industry will again be established in confidence, especially if the price of produce other than meat would advance slightly in price.”