INTEREST ON MORTGAGES

Taranaki Daily News, 14 February 1931, Page 6

INTEREST ON MORTGAGES

CONCESSION SUGGESTED RELIEF FROM HIGH FOOD COSTS. MR. C. A. WILKINSON’S OPINIONS. The seriousness of the financial burdens, particularly as they affect farmers in view of the present low prices for primary produce, wag discussed by Mr. C. A. Wilkinson, M.P., with a Daily News representative ■ yesterday. Mr Wilkinson stated that he had written to the Rt. Hon. G. W. Forbes, Prime Minister, suggesting that in view of the widespread depression, which was likely to continue for some time, the Government should consider legislation with a view of capitalising overdue interest, especially in connection with the Advances Department, and also for the remission of penalties for failure to make prompt payment on the due date. Tliis concession should be given only to those who were quite unable to pay their instalments, and particularly in regard to the “carry over” of penalties every half-year in the event of failuie to make one payment, although subsequent payments might be picked up. “This course of action would not be feasible,” said Mr. Wilkinson, “where there are second and third mortgages, unless the holders of these mortgages are agreeable to come into line in a general scheme to assist the boi towel. In some cases, owing to shrinking values, the second and third mortgages are valueless, arid this aspect of the case should be fully considered, because if not met in some way, it is possible that the borrower would not care to <rq on owing to the fact that all his earnings wbuld go to the benefit of both the Second and third mortgagees. “Unquestionably a tribunal would have to be established, perhaps not with compulsory powers, but with a view to making recommendations to all the parties concerned, it being imperative that farmers should be kept on the land and production should continue, otherwise we will have serious trouble with our commitments in Loudon. If this coui'se were adopted the Government would be giving a lead to private lenders, and an’ encouragement to those wlio are heaiily burdened and are seriously embarrassed by the low pay-outs now being made.” Mr. Wilkiqson is also keenly interested in legislation being promoted by the Government to reduce the heavy charge placed on food —bread and flour, which are both abnormally high in price owinw to laws made by Parliament in the past, and which so fair have not proved capable of adjustment because of party interests. “The price of bread and flour, being staple foods, is outrageously high, beino- dduble Loudon parity, and cannot be° made lower while the present legislation stands,” he said. “It seems grossly unfair to compel fanners and workers to pay excessive prices for these necessities for the benefit of one section of the community, who, together with the manufacturers of flour, are allowed under the law to obtain fixed prices, which by the way are very high prices, for their products, whereas the ordinary dairy farmer, meat farmer and wool fanner all have to sell at exceedingly low prices and. take practically what they can get. The worker is also not given much of a chance with his reduced wages and the standing high prices for his daily bread.” Mr. Wilkinson is strongly of opinion that Parliament should act on these lines, which would bring about some measure of relief to thosb who are labourin'- under heavy burdens to-day.