THE MORTGAGE TAX.

Poverty Bay Herald, Volume XXXVI, Issue 11841, 3 May 1909, Page 2

THE MORTGAGE TAX.

IMPORTANT ■••Sl l AT_n__JNi v BY THE PREMIER. j

INCREASED INVESTMENTS,, ;

DEFENCE OF THE LAT*D SYSTEM

(Per Press .-Association.).

INVERCARGILL, last night. ■'. In the course of his speech last night Sir Joseph Ward said that there had been an -agitation in 'one portion of New Zealand, particularly .Wellington, to endeavor to have what was, known as the mortgage, tax, repealed on the ground that it is preventing, money coming into New Zealand for investment. It was astonishing . to find tluit during the -last six ... years there was an increase of* investments m mortgage, apart ; entirely from ... Governments departments, , 7 of £1,664,393, or an increase of nearly!.. 4o per cent, of the capital invested upon mortgages during these years. ... Then it was contended that the Advances to Settlers Department had driven out the mortgage. companies formerly operating m- New- Zealand.- The total ambunt of capital withdrawn , by them would amount to two millions, and as fast as it was withdrawn it wasVre'-' placed; by the Advances to Settlers Office> which had invested over' eight millions...; ••■■..-.

T rhe7realo.Qrini of those who suggested the abolishment 1 of the moiirgage tax was .virtually t<i make ah attack, upon the land 'taxation of tho country; •: If the tax' Were abolished it >votald *nieart the.abolition of the land tax upon a total value of over 72 millions sterling, and the incredible fact remained that when interest was ruling m New Zealand at A_ per 7eent. large sums .were sent for ittyestmrafcYat those . rates, and the. mortgage/ tax existed at^2s per cent! omore than it is how, wheirefts to^dfljf investments; were "Retting up YtQ sevfeii per cent. .It was foolish reasoning;, -It was absurd thai' while they did hot! object when the rate was low we should now be told they .should do .so when the rate was higher. ; ,v , In reference to money being sent out of tho country, there was nothing m the statement except that m a few cases where people have sold large estates m New 7 Zealand they had gone to another country to try to purchase large estates there. The land system was intended to break up large estates, and it •eould J . hardly be expected that the Government . were going tp change a material portion of the law which Was intended 'to benefit the couhtry -to provide for exceptional- cases hf that kind.