FARM MORTGAGES

Greymouth Evening Star, 18 April 1936, Page 6

FARM MORTGAGES

MR, SAVAGE’S STATEMENT

[PEB PBESB ASSOCIATION.]

WELLINGTON, April 17.

The new mortgage legislation, although it is to be introduced as a separate measure, wilt be practically an integral part of the developments arising from the Guaranteed Price Bill, according to an announcement by the Prime Minister, Hon. M. J. Savage, in an interview. The Government attaches great importance to both measures, and urgency will be taken for them when they come before the House of Representatives. At the same time the Prime Minister indicated that urgent action was likely to be taken in regard to farm land valuations, in order to stop speculations arising from the payment of a guaranteed price for dairy products. “The Guaranteed Price Bill is not yet ready for submission to the House, the Prime Minister said, “although we are anxious to bring down our proposals as soon as possible. However, the question of mortgages is inextricably bound up with the payment of the guaranteed price, and we want to have the two measures ready for presentation almost simultaneously.” Mr. Savage said it was only fair that farm mortgages should be based on the returns which it was proposed to guarantee to the producers. Those returns would be guaranteed on the basis ot what an average man might earn under average conditions. Similarly, mortgages should be based on the law of averages, and the mortgagee who expected to get “boom” returns from his mortgage when ! slump prices were ruling was not in touch with realities. There would be ' a conservation of equities on both sides, although the process might result in some writing down of the paper values in 'the cases where the mortgagees were ignoring the presentday conditions. “The Mortgage Bill will be wide in its scope,” he said. “For instance, it will be applicable to urban as well as to rural mortgages. There is no reason why a man who has bought a house and has suffered by falling values, should not receive the same protection as the farmer who has suffered from the depression. Rents, too, will have to receive consideration, although that may be a matter for further attention in another Bill.”