NOT YET FIXED

Gisborne Times, Volume LXXXIII, Issue 12610, 20 July 1935, Page 7

NOT YET FIXED

LENDING RATE OF MORTGAGE CORPORATION.

TRANSFER. OF STATE ADVANCES

MONEY FOR, OPERATIONS

DEBENTURE! ISSUE HINTED.

(Press Association? WELLINGTON, July 19. The first,/ meeting of tho board ot directors of the Mo-rtgage Corporation of 'New Zealand wais held yesterday', there being present the -chai-r----man., Sir Wiillfam Hunt, Messrv, A. D. Parle and T. N, Smallwood, joint managing directors-, James Robertson, the State dirctar, G. A. Lewin, L. W. Nelson, and C-. Russell Smith, fe-hareli-o-lders,’ director* 3;, arid B. C. Ash win, assistant .secretary to the •treasury', ex-officio director. The Hon. Adam Hamilton, the ncting-Miriister of Finance, -hri-efly addressed the hoard .prior to- the commencement. In an interview, Sir William Hunt stated that matters of major importance had engaged the attention of directors'. The hoard at present was conferring with the Minister df Finance as to the terms upon which the State advancer and -other -Government .mortgages are to- he taken over by the corporation, arid as this is a financial transaction involving many millions of pounds, it could not he- expected that the details) could he settled without, mature consideration. He added that thV was the first ■step in the business organisation of the corporation, and while- the hoard would naturally like to- make a public announcement as to the lending rate of the corporation, it regretted that until tho details in connection with tho transfer of State mortgages had been concluded it was not exadty practicable ‘for the bound to- give final •eo-nukleration to what its lending rate would lie. There was another, and the most important, alspect of the corporation’ii activities that must also be concluded, before the bo-a-nd could fix its lending rate. Tie drew attention to the fact that the lending rate of the corporation depends largely upon the .rate of interest at which the corporation can borrow. JTo intimated that the hoard at present was considering tho question oif a, debenture is--5,n0, and upon the term,? of this depend the lending rate. The directors felt that it would be premature at this, early stage to fix a. definite lending rate.

INTEREST RATE ANNOUNCED NEXT MONTH.

The directors were very p!e:vo;l with the progress that had been triade up to. the present in the prep.nr ntionfr foie taking over the State a.dances mortgages by the corporation. This tran laetiv/n. alone would make tho corporation one of the largest financial -institutions in the Dominion, and the directors felt- confident thatwith such, a- roll'd foundation the corpoira.fkm must exert a powerful influence for tho good of borrowers and lenders alike. The hoard will make an announcement at the earliest possible date, probably early in August, a.s to the ■lending rate decided upon, and nr, to when tlie corporation will ho in a position to accept applications for now loans. The corporation will arrange for itn shares to be lifted on the respective stock exchange* -off the Dominion. .Share .certificates will be ready for issue this week, and the corporation hopey to bo in a position to accept transfers in the near future. STAFF APPOINTMENTS. The hoard has appointed Air G. E. Milieu-' ,at present superintendent of the State Advances Office, to the position of manager of the corporation Other appointments were Mr F. E. Mitchell, at- present •chief inspector of the Treasury and secretary of the Local Government Loans Board, to position of Meeretafy and inspector to the corporation, and Mi- IC. ,T. Gavethin, at present deputy-superin-tendent of the State Advances Office, to the position of chief? accountant to the corporation. The staff of the State Advances Office liasi been, seconded for- duty with the corporation, hut it lot the intention op the board of directors at an early date to. consider tlie whole question, of staff, with a ivieiw to making . appointments to •the staff of the corporation.