FORMERS’ MORTGAGES.

Star (Christchurch), Issue 16635, 18 January 1922, Page 10

FORMERS’ MORTGAGES.

WAIKATO DIFFICULTIES. [From Our Correspondent.] WELLINGTON, January 7 A deputation from the Dairy Farmers’ Association in the Waikato several weeks ago placed before the Prime Minister suggestions for State interference between mortgagors and mortgagees where the former were -unable to carry on farming. The Prime Minister, though declining to subscribe to anything savouring of repudiation ol : obligations under mortgage, undertook to send an officer into the district with the object of bringing together some of the parties who were said to be mutually willing to make an arrangement which would enable farmers in difficulties to carry on. To-day, as the result of a question from Mr Young, he was able to inform tho House that he had sent the Val-uer-General into the Waikato to look into the statements made by this deputation. The Valuer-General had informed him since his return that his trip, from some points of view, was quite satisfactory. He did not, however, recommend legislation to break contracts, and this was in accord with the speaker’s own view However, tho Valuer-General had been able to bring together a number of people who had difficulties in meeting their mortgage obligations, and in. several instances was able to make a satisfactory arrangement between mortgagor and mortgagee, either to reduce the amount of mortgage or lessen the rate of interest. The Valuer-General informed him that there was nothing seriously wrong, thougfi many people who had bought farms during boom times were supposed to have paid too high a price, though little money had passed. Mortgages in these cases were heavy. Of seven thousand suppliers on the books of one big dairy company very few could not make ends meet, and there was nothing in the way of a rush of farmers from their land. A few had failed, and a few more were expected to fail, but on the whole most of them took a cheerful outlook, and expected in a few months to be able to overcome their difficulties.