CORRESPONDENCE

Hawke's Bay Tribune, Volume XXII, Issue 36, 26 January 1932, Page 7

CORRESPONDENCE

It must be distinctly understood • that we are not to be identified with the opinions expressed by correspondents in our columns. MORTGAGORS’ BELIEF (To the Editor.) Sir, —In this strenuous and heartbreaking time for the farmers, few realise the help the Government has given in the Acts passed last year, viz.: the Mortgagors’ Relief Act in April, aud more especially the amending Act brought down by the present Government in November. The ever pressing fear in the farmers’ minds is the inability to pay their interest in full, and of proceedings being taken against them for such interest at penal rates and the possibility of being sold up. Under tho above Act no mortgagor can be unduly harassed and an opportunity is given all to carry on and hope for better times. Wo have had these depressions before, followed by good times, and these good tifnes (not boom prices) will come again. As far as tho relations between mortgagees and mortgagors are concerned, threo-fifths of tho mortgagees have been most helpful and have arranged extensions of mortgages, postponement of part of interest, and generally have behaved as humane people. But there are the other two-fifths who will not meet or help in any way, aud consequently interests or part of interests are not being paid owing to the fear the farmer has of extreme action being taken against him. This is where the Mortgagors’ Relief Act cun be of such great service. Few farmers sec these Acts, nor—may I say?—-is sufficient information given them through the papers, nor have wc the knowledge or experience to grasp their meanings unless put in words plain to our uuderstanding. My reading of them is as follows and 1 hope I am right—if not, no doubt you will kindly correct me:

1. No mortgage or chattel eurity in existence on March 18, 1931, can bo called up without giving the mortgagor an opportunity of having his position reviewed by a Magistrate, where the sum is £2OOO or under, or by a Judge of the Supreme Court, when over that amount. Such review is not to take place in open Court, nor is publicity to be given to it. 2. If the mortgagee takes proceedings to call up or to recover interest due the mortgagor has not to bear the mortgagee’s costs; paying, of course, his own.

3. If the mortgagor is paying his interest, then no mortgage can be called up, never mind whether due, past due, or coming due, till after the 31st December, 1933. 4. When a mortgagor is being pressed by the mortgagee and notice given to pay up either principal or interest, the mortgagor must within a month give notice he wishes to have his position iir •’stigated before a Judge or Magistrate (according to the amount). 5. The investigating judge or magistrate can, if he thinks fit and reasonable—especially in respect of any lands which in the opinion of the Court are mainly or substantially used for farming purposes —postpone payment of principal, postpone payment of interest, ret’ice the rate of interest, remit the whole or any part of any arrears of interest. 6. Besides this, to encourage voluntary settlements, the Government have set up a Mortgagors’ Liabilities Adjustment Committee or Commission, before whom any mortgagor can appear or put his position for the purpose of having some equitable arrangement made with the mortgagee. To my many farmer friends who have explained their troubles to me, and to many others, I hope the above will be of help. But every effort should be made by them to offer to pay as much of their interest as possible, even if only a small part, as they must remember the lender is due every consideration and he also has to live. If postponement of interest only is required, and I believe that is all the farmers ask for, the more they can pay now the less they will havo to pay later.—l am, etc. J. A. MILLER. Hastings, January 25, 1932.