FARM MORTGAGES

New Zealand Herald, Volume LXXI, Issue 21782, 23 April 1934, Page 12

FARM MORTGAGES

Sir, —Th 9 question of reducing the rate of exchange to its former level crops up continually. Has the country received any real benefit of a permanent nature from the advance? We are told that the banks have received millions from the Government to reimburse them for losses they would have sustained by the advance, and I suppose as long as the present arrangement holds the Government will have to find the money for the banks. Would it not be better to get at the foundation of our trouble, i.e., the too * high price of land, do away with the advanced exchange and apply the millions to reducing mortgages to a level that would enable the farmer to pay his way. The reductions could be made by arranging, to give debentures bearing 5 per cent interest to the mortgagees, the debentures to be redeemable in the ordinary way. The.Government could safeguard itself' against any land speculation by claim-f ing all or part of any value obtained by the sale of a farm in excess of its valuation, when the mortgage; reduction is inade, giving due allowance for improvements. Surely our economists could formulate some plan on these lines that would permanently restore the stability of the State, instead of propping it up with temporary measures of relief. •Vacuum Cleaxeb. V: