Mortgagor and Mortgagee

Manawatu Times, Volume 60, Issue 68, 22 March 1935, Page 7

Mortgagor and Mortgagee

Assistance For The Farming Community

MLASUEE PASSES SECOND READING Per Press Association. WELLINGTON, Last Night. The second reading debate on the Rural Mortgagors’ Bill was resumed in the House of Representatives this afternoon. Mr R. Seinplo said he did not thi k it was possible to bring the comitrjr back to prosperity until they lilted all the people and not one section on y. All measures in recent years had centred round the farmers, but there were others in distress besides the farmers. He did not think tho present Bill wonlu assist anyone. He deprecated the action of the Government in taking the pension of returned soldiers m payment of interest on mortgages. Mr F. Jones said a bold and constructive policy had brought 50 per cent, of the country’s dairy-farmers to the verge of bankruptcy and had antagonised the buyers of New Zealand produce. He quoted a number of articles the prices of which, lie declared, had been increased by the increase in the exchange rate and tho imposition ot the sales tax. The present Bill, lie added, was a continuation of the Government’s deflationary policy and was class legislation. While workers m the cities received *no relief, the bondholders’ security was nindo secure. Tno present Bill would increase costs and those costs would have to be borne by the farmer, as well as other sections of the community. He expressed regret (hat no Minister had indicated to the House the result of recent caucuses and whether the Bill was lo be proceeded with. Mr J. A. Nusli said tho main object of tho Bill was to enable tho farmer to remain on the land. Rcferiing to the Adjustment Commissions, lie said that, to February 28 last, applications referred to commissioners numbered 12147. Tho estimated number of applications filed was 14,000 and the ratio of rural to urban applications was 60 to 7. Therefore, rural applications numbered 14,400. The ratio of applications refused to those filed was one to eight, or 1550. Tho number of applications in which relief w r as granted was 10,850 and the ratio of applications filed to those settled privately—that was, without, recourse to the Couit —was one to two. Therefore, the estimated number of cases settled was 21,700 and tho totnl number of cases in which relief -was granted, either privately or by recourse to the Court, was 32,550. He thought the Moitgagors’ Relief Commission had accomplished a great deal in tho short time it had been operating. Hon. J. G. Coates, in reply to the debate said interference with contracts was tho very last thing a man brought up in New Zealand or Britain would desire. He had listened to a number of members who had said that contracts should not bo interfered with, but he wondered if that was so in time of emergency. The House had to decide whether there should be a general adjustment between creditor and debtor. It was recognised that much of tho indebtedness oil rural land to-day could not be recovered and it was not fair that it should be recovered. He believed a number of people did not realise tho tremendous difficulty that faced the primary industry, on which they depended so much. Ho thought it was indicated in tho Bill that tho Government’s intention was (o keep all energetic and capable farmers on (lie land, and he considered that the best adjustment could be achieved if it was left to a body of capable men skilled in all departments. He had not heard anyone in the House say it was not a problem. The Government had decided it was essential and necessary that the position should be faced up to, and as a result of careful consideration over the past couple of years, it had achieved certain results, but it had not dealt with over-burden. The provisions of tho Bill were really compulsory conciliation. Ho indicated that his party was free to vote as it wished. Mr W. E. Barnard: Did the Minister infer that tho Bill would go to face a vote of the House? Mr Coates: If it is suggested that the screw has been put on any members of my party, I have never heard such a ridiculous suggestion. Every member of tho party, if he had definite opinions, could exercise them.

He contended that it had been tho making of thousands of farmers in the country to-day and they had agreed to work under a budget. It was a foolish nation that did not live under a budget and every individual in a nation should live according to a budget. After the tea adjournment the second reading was carried by 44 votes to 26, tho division list being as follows: Ayes. Ansell, Kitchener, Bodkin, Broadfoot. Campbell, Clinkard, Coates, Cobbs, Dickie, Endoan, Field, Forbes, Hamilton, Hargest, Harris, Hawke, Healy, Henare, Holland, Ilolyoake, dull, Kyle, Linklater, Lye, MeDougall, McLeod, McSkimming, MacMillan, Macpkerson, J. N. Massey, W. W. Massey, Murdoch, J. A. Nash, Ngata, Poison, Ransom, Reid, Samuel, Smith, Stuart, Sykes, Te Tomo, Wilkinson, Young. Noes. Armstrong, Atrnore, Barnard, Carr, Coleman, Fraser, Howard, Jones, Jordan, Laugstone, Lee, McKeen, Munro, W. Nash, O’Brien, Parry, Richards, Rushworth, Savage, Schramm, Semple, StaHworthy, Stewart, Tirikatene, Veitch, Webb. Mortgage Corporation Bill DEBATE IN LEGISLATIVE COUNCIL Per Press Association. WELLINGTON, Last Night. In the Legislative Council tins afternoon the debate was continued on

ilie second reading of the Mortgage Corporation of New Zealand Bill. Hon. M. Fagan said the position of the farmers was not entirely due to the depression, but was attributable to extensive gambling in land between 1917 and 1929. He said he would oppose the Bill at every stage, as it submerged and destroyed valuable State lending institutions.

Hon C. J. Carrington said he could not support the Bill unless it was altered in certain circumstances. He considered other means could have been devised to meet the difficult situation.

Hon. W. Hayward said the -Bill must be accepted as the considered opinion of the majority of the members of the House, and as such was entitled to careful consideration, but lie was prepared to say that the legislation was both unnecessary and dangerous. Hon. .D. Buddo said no country could afford to neglect agriculture. It was ossential that something should be done to stabilise farm mortgages in New Zealand. Hon. V. A. Ward said the State Advances Department would continue to function under the corporation and to carry out the department’s original function of lending money to workers and settlers at a. low rate of interest. The Council adjourned until 10.30 tomorrow morning.