The Star. FRIDAY, DECEMBER 21, 1906. THE LAND BILL.

Star (Christchurch), Issue 8808, 21 December 1906, Page 2

The Star. FRIDAY, DECEMBER 21, 1906. THE LAND BILL.

One of the principal objections raised by the opponents of the Government's Land Bill is that the limitation clauses will press so harshly on the mortgagee ac to. completely disorganise the present, system of advances. In reality, there is not the slightest cause fo? fear on this account. As a local, bank manager pointed out in our columns yesterday, the mere raising of money is not affected by the Bill. If the Bill becomes law the lending firms will continue to make advances, just as they ever did,, on a satisfactory title. This view is confirmed by the Minister of Lands himself. Bona fide lenders are not, he says, affected by the Bill. By way of defining the bona fide .money-lender he says: — "Companies that lend money, and, while lending it, assist their borrowers to tide over difficult periods, are not affected by 1 this proposed legislation." On the other hand, the Bill i<a i frankly aimed at the land speculator as distinct from the bona fide moneylender. The money-lending speculator who takes advantage of his clients' temporary difficulties to foreclose with the object of holding for *.a rise/ to again quote Mr M'Nab, "will feel the pinch." This ie, of course, as it should be. The Government's object is, while ensuring the cutting up -of big.holdings, to prevent future large aggregations. It would be simply defeating its own purpose if it did not forbid reaggregation under the guise of foreclosure. Otherwise, at the end of an unprofitable season the less scrupulous money-lenders • would be foreclosing right and left on their weaker clients, and • the process of subdivision would have to be begun over again. But, while insisting that mortgagees shall dispose of their securities if they fall into their hands, the Government pro*? poses to allow thean considerable latitude in doing so. A mortgagee may hold a property for two years before he i© compelled to realise, and the utmost freedom of transfer will then be allowed him, provided it is for the legi* timate object of assisting him to reali** his security. But it would be a us»« less waste of energy t° P BI6B tbe limitation clause without making provision against its evasion. If the mortgagee, were not compelled to realise within a ■ stated time, a bogus mortgage or a bogus transfer would enable an unscrupulous land-grabber to drive the proverbial coach and four through the Act. But the • honest - lender will not be hampered in his business. The only difference that the Act will make to him will be that the number of separate sse* curities will be multiplied and that it will be necessary for him to exercise^ a greater discretion in his choice of them. And the borrower will stillbe able to obtain money in , proportion to the merit of his title and the value of the security he has to offer.