STATE LENDING

New Zealand Herald, Volume LXXII, Issue 22165, 19 July 1935, Page 13

STATE LENDING

MORTGAGE CORPORATION DIRECTORS' MEETING HELD INTEREST RATE NOT SETTLED APPOINTMENTS TO STAFF [BY TELEGRAPH —PRESS ASSOCIATION"] WELLINGTON, Thursday The first meeting of the board of directors of the Mortgage Corporation of Now Zealand was held yesterday, there being present the chairman, Sir William Hunt, Messrs, A. D l . Park, T. N. Smallwood (joint managing directors)., James Robertson (State director), G. A.Lewin, L. W. Nelson, C. Russell Smith(shareholders' directors), and B. C. Ashwin, Assistant-Secretary to the Treasury (ex-officio director). The Hon. Adam Hamilton, ActingMinister of Finance, briefly addressed the board prior to-the commencement of business. : In an interview to-day, Hunt stated that matters of major importance had engaged the attention of the directors. The board was at present conferring with the Minister of Finance,Mr. Coates, as to the terms upon whifch the State Advances and other Government mortgages were to be taken .oveif by the corporation, and that as this was a financial transaction involving many millions of pounds it conld not beexpected that the details could be> settled without mature consideration. _

Question of Lending Bate Sir William added that this Was thd ; first step in the business organisation of J the corporation, and while the board would naturally lijke to make a publid announcement as to the lending rate of the corporation, it regretted that until details in connection with the tranafolf of State mortgages had been concluded it was not exactly practicable for thtf board to give final consideration to what its lending rate would be. There waaf another and most important aspect of the corporation's activities that must also be concluded before the board could fix its lending rate. Sir William drewf attention to the fact that the lending; rate of the corporation depended largely, | upon the rate of interest at which the corporation could borrow. He intimated that the board was at present consider- ; ing the question of a debenture issue,; and the lending rate depended upon the terms of this. The directors felt that it would bo premature at . thi< early stage to fix a definite lending rate.; The directors were very pleased with the progress that had been ma.de up-to the present in preparations fofe, taking over State Advances mortgag<ss;by the corporation, said Sir William Hunt.: This transaction alone would make th© corporation one of the largest financial institutions in the Dominion, and the directors felt confident that with such a solid foundation the corporation must exert a powerful influence for the good of borrowers and lenders alike. ' . ': W. ii ; Announcement in August " The board will make an announce-' ment at the earliest possible date—pro" bably early in August—as to' the lend" ing rate decided upon and aB to the corporation will be in a position to accept applications for now loans- t ' f Sir William Hunt added. " The ccft" potation will arrange for its shares:-fell _ i be listed on the respective Stock Ex- ; changes of the Dominion. Share certi,- \ ficates will be ready, for issue this week:, • and the corporation hopes tto be in a position to accept transfers in the near future." • ■. The board has appointed Mr. 6. EL Miller, at present superintendent : of the State Advances Office, to the position of manager of the corporation* Other appointments were:—Mr. F. JS. Mitchell, at present chief inspector ~ti) the Treasury and secretary of the Local Government Loans Board, to the pOsi» tion of secretary and inspector to th(> corporation, and Mr. K. J. Gaverhill, : at present deputy-superintendent of tho State Advances Office, to the position of chief accountant to the corporation. The staff of the State Advances Office has been seconded for duty witli the corporation, but it is the intention of the board of directors at an early date to consider the whole question .of staff, with the view to making jper* , manent appointments to the staffjrif the corporation.