NATIONAL ISSUES

Otago Daily Times, Issue 22717, 1 November 1935, Page 8

NATIONAL ISSUES

THE MINISTER OF FINANCE CAMPAIGN IN KAIPARA (Per United Pbess Association) HELENSVILLE, October 31. Continuing Ms campaign in the Kaipara electorate, the Minister of Finance, Mr J. G. Coates, addressed three meetings to-day. In all his speeches he dealt with broad national issues rather than matters of purely local interest Mr Coates stressed the importance of the part being played by the Mortgage- Corporation in providing cheap; stable finance with lower costs of administration. It incorporated the principles of mortgage finance, tested and found successful by the mortgage banks in ether countries, the main principle being the raising of the necessary funds by the issue of bonds to the public secured linst share capital ami reserves as well as against the whole of the mortgages. In this fashion the risk was spread instead being concentrated between two persons. The corporation had already demonstrated that it could raise finance from the public at rates comparable with those on Government securities, and by offering advances at 4J per cent, had made an important contribution in cheapening mortgage finance. " Some people seem the think the Government should continue to expand its advances through State departments, Mr Coates said. "In the past it has always been difficult to meet the requirements in this way. Public loans had v, be raised arid the National Debt increased. There was a tendency for the confidence of the investors in Government stock to be affected, the cost of borrowing to bo increased, and conversion operations prejudiced. Under the Mortgage Corporation the National Debt is not increased and there is a much more elastic system of finance readily capable of expai iion. Losses have to be met by the; corporation itself, while the losses onStai advances fell ultimately .on ,the Consolidated Fund and made the problem of the Minister of Finance more difficult in times of depression."