MORTGAGES

Stratford Evening Post, Volume IV, Issue 121, 4 May 1936, Page 5

MORTGAGES

GOVERNMENT'S FLAW. TO TAKE OVER CORPORAI hon. I Readjustment On Basis Cf Guaranteed Prices, NEW VALUATIONS. Press Association —Copyright. Wellington, Today. Two mortgage bil's giving effect to the Government's policy cf basi'ng mortgage values on 'ihe cjuaranteed price for dairy products are expected to be *tf.itro>duced in the Houso of Representatives in the near future. The Government intended to take ever the Mortgage Corporation lock, stock and barrel, said the Prime Minister, Mr M. J. Savage, in an interview yesterday, in much the same manner as ft had assumed full control ever the Reserve Bank. However, (here would be certain differences in methods and results. Private capital would be bought out, but, as in the I case of the Reserve Bank, private! shareholders in the-corporntJon would not be the losers by the transaction. The reorganised corporation would be made" to lake control of all the State's lending activities. The second Bill, the Prime Minister said, would provide for all mortgages to be based on the guaranteed price, which the*Government proposes to pay to dairy-farmers. Tn taking that action ,the Government held that it was considering equally the position both of mortgagors and .mortgagees. It would provide a definite rasis of security. At present some mortgages were based on about 2s 6d a pound for butter, when the return to the farmer was' about Is. That position was manifestly . impossible, and it would be the object of the Government's legislation to rectify it as soon as possible.

Mr Savage slated that, under the proposed legislation, new valuations would be made right through the* on the bnsTs of the guaranteed p'nice. Under* the* Government's scheme, Mr Sav?ge added, th« proposed procedure would apply to all mortgages, whether rural or urban.