MORTGAGE CORPORATION

Hawera Star, Volume LIV, 14 June 1935, Page 12

MORTGAGE CORPORATION

EXTENT OF COMPETITIVE BUSINESS. BANK OF NEW ZEALAND VIEW. (Special to the “Hawera Star.”) •WELLINGTON, To-day. After summarising the main provisions of the recent rural finance and mortgage adjustment Acts, the chairman of directors of the Bank of New Zealand (Mr William Watson) said today at the annual meeting of shareholders that no doubt many were wondering what effect this legislation would have on the bank’s business. ‘ ‘ It will possibly oecur to you that the Mortgage Corporation may prove to be a formidable competitor for advances against farming properties—a class of lending, I may say, which constitutes ini considerable portion of our loan ■business,” said Mr Watson. “I do not anticipate, however, that the operations of the corporation will affect to any material extent the volume of our advances to sound farming (customers,* the majority of whom will, I consider, prefer* to continue working on overdraft rather than on table or fixed mortgage. Neither do I tnink that other than relatively a small number of our farming customers will need to take advantage of the provisions of the Rural Mortgagors Final Adjustment Act.”