MORTGAGE SECURITIES

Manawatu Standard, Volume LV, Issue 209, 2 August 1935, Page 14

MORTGAGE SECURITIES

TRANSFER TO CORPORATION. CABINET DISCUSSIONS. WELLINGTON, Aug. 2. An Order-in-Guuncil was gazetted yesterday announcing the transfer of securities vested in the State Advances superintendent to the Mortgage Corporation of New Zealand as irom August 1, 1935. The order deals only with two.classes of securities specified in section 30 of the Mortgage Corporation of New Zealand Act, these being (a) mortgages vested in the State Advances superintendent in respect of advances to settlers or workers under the State Advances Act, 1913, and (1>) mortgages similarly vested in respect of advances made under the Rural Advances Act, 1926. It thus would seem that provision has not yet been made for the transfer to the Mortgage Corporation of debentures or other securities in respect of advances to local authorities or mortgages vested in the Crown or in any person on behalf of the Crown in respect of advances made to discharged soldiers. In this connection an interesting point lias been raised by close obsevers of the position, this being the possibility that, if the corporation should vary the rate of interest on advances to "settlers and workers to the advantage of the mortgagors, discharged soldiers, even though outside the jurisdiction of the corporation, naturally would expect to secure a similar measure of benefit. Although the date for transferring of the State Advances Department s securities to the Mortgage Corporation has been gazetted, ail the machinery for putting the transfer into active operation lias not yet been constructed. Tho process of assembly, so to speak, is still going forward. Cabinet has not yet completed the terms of transfer. The question was discussed at length on M ednesday afternoon and again twice yesterday at full meetings of Cabinet wun the exceptions of the Ministerial delegates now on tlieir way from London and the Minister of Defence (Hon. J. G. Co hive), who had been detained on official business in Auckland, but fate last evening no official statement ot decisions was available. \fter all. the transfer of securities to the Mortgage Corporation is largely a technical matter. The vital question has vet to be decided bv the _corporation as a new lending institution : this is the question of the rate of interest. Will the corporation he able to obtain monev cheap enough to make advances at less than, say, 4 or A; per cent..