MORTGAGORS AND INTEREST.

Southland Times, Issue 21362, 7 April 1931, Page 5

MORTGAGORS AND INTEREST.

To the Editor. Sir,—On February 3 you were good enough to publish a letter of mine but unfortunately you did not consider commenting upon it. Were the facts and arguments set out unanswerable? I do not claim to be an economist nor an accountant, but again I would like to write a few lines as from a struggling farmer. There is one word kept very much in front of us at the present time and much used and misused for propaganda purposes and that word is “repudiation” and no doubt this word will be much to the fore when the Mortgagors’ Relief Bill is before the House. .-•■■. :• It seems to me that the only alternative before us to-day, is, some form of repudiation or vacant farms. If lam wrong I would like, say “The N.Z. Welfare League” or “Accountant” to come forward with a practical solution. It was this problem which brought forth the scheme from the Canterbury Chamber of Commerce, a body of business men. Of course, mortgagees can sit tight and demand their “pound of flesh,” but, like Shylock they will be afraid to do so when they realise just what that means. (I do not like to use such a harsh illustration, I recognize that mortgagees, are, in most cases, honourable men and yet the fact remains that many mortgagees to-day would be better off to write down their mortgage and also the interest rate rather than have the security—the farm—neglected and uncultivated). ’ But the real purpose of this letter is to draw attention to the fact that in 90 per cent, of cases interest rates, at least, can be rearranged and reduced without any “breach of contract” or “repudiation.” Is it not a fact that most short term mortgages are overdue and can therefore be renewed or rearranged on any terms agreed upon? Is it not a'fact that in most long term mortgages there is a clause making provision for repayment of principal or part of principal practically at any time, and again ‘ there is ho breach of contract. ' ' - In family’life when Dad, the bread winner, is sick the first and urgent thing tp' consider is how to get him oh his feet again, and other members of the family, realising this are prepared to sacrifice themselves to bring this about.' ' ' * ' So in our national life the bread winner is down and out and we have a right to expect some form of real assistance from those able to give it. —I am, etc., “POTATOES.”