MORTGAGE BUSINESS.

Star (Christchurch), Volume LXVI, Issue 20454, 6 November 1934, Page 9

MORTGAGE BUSINESS.

The Proposed National Corporation. NO MONOPOLY INTENDED. (“Star" Parliamentary Reporter.) V\ ELLINGTON, November 5. During the summer recess Mr Coates proposes to concentrate on the proposed National Mortgage C orporation, with a view to having legislation ready when Parliament resumes in February. In announcing this in the House tonight, Mr Coates made it plain that there was no intention of establishing anything in the nature of a monopoly of mortgage business. “While on the subject of finance there is one other matter that I would like to mention,” said the Minister, ‘and that is the National Mortgage Corporation prQposal, referred to in the Budget. Time did not permit of it being dealt with this session, but I propose to concentrate on it during the recess, with a view to having legislation ready when Parliament resumes. So far the proposal has only been dealt with in broad outline and general discussion of the matter would be premature until definite proposals can be submitted. Misconceptions. “At the same time I would like to take this opportunity of removing one or two misconceptions that appear to exist. The permanent objective that the Government has in mind is a soundly organised system of long term mortgage finance, based on the well known mortgage bond system extensively used in other countries. That will create a standard agricultural investment, through which capital can confidently flow into the farming industry. By largely obviating the risks normally involved in individual mortgage investments, and providing security which is practically as liquid as Government stock capital will be obtained at cheaper rates. That is the essence of the idea. “Concurrently and in conjunction with the Mortgage Corporation other measures will be proposed for dealing with the pressing problem of the financial rehabilitation of farmers and other-, whose position has been rendered untenable as a result of the heavy fall in prices of primary products. A Considered Scheme. “So far as the National Mortgage Corporation is concerned, various proposals have been suggested, but people should not jump to conclusions that any particular features of these proposals are going to be adopted. Judgment should be suspended until the Government is able to bring down a considered scheme. It is fully realised that the success of the project depends upon obtaining the confidence of investors in mortgage bonds, and the House and people can rest assured that the corporation will be organised on sound lines. “Furthermore*; there is no intention of establishing anything in the nature of a monopoly of the mortgage business, and, if the parties concerned prefer it, they will be able to continue making contracts for individual mortgages. We do feel, however, that a proper organisation can narrow the margin that exists between the market rate for mortgages and for good Stock Exchange securities, and in the interests of the whole Dominion we proI pose to set up an organisation.

“This organisation will, it is hoped, stabilise lower rates of interest, but provided concerns at present doing mortgage business are willing to do that business at market rates of interest, having regard to the nature of the security offered, there is no warrant for the statements made that their business is to be taken away from them.” MINING REPORTS. Central Sliotcver. Per Press Association. DUNEDIN, November 5. Central Shotover Gold Mining Co., Ltd., reports that on November 3 the paddock was completed and a return of 1 8oz 13dwt obtained, which, with the gold won on the previous Saturday (iloz 16dwt), makes a total of 2Soz 9dwt won from this paddock. The paddock comprises approximately one-quarter of an acre, and the depth varies from 16ft to 20ft. The time taken to work this paddock was sixteen days. Matakl. AUCKLAND, November 5. The Matakl return for the week ended November 4 was 4 ooz for 129 J hours’ work. Moanataiari G-olconda. The Supervisor of Moanataiari Golconda Consolidated, Ltd., advisees that the cross-cut has advanced a further eighteen feet, making 138 feet up to date. During the week a leader about six feet wide was passed through close to the boundary of the Golconda Mines property, showing colours of gold. A second leader approximately the same width has been cut in the company's own ground, carrying nice mineral. We • ire now passing through good reefing rountry. Bell Hooper. The Bell Hooper Cromwell Gold, Ltd. report for the week ending November 2 ' No. 2 Mine Area—Block Q, north-west of No. 3a north drive; 147 square feet of bottom was cleaned up in this block for good gold. East of No. 3a North Drive—Bs i square feet of bottom was cleaned up for fair gold. Values at present are patchy. At the start of the present panel 4 cubic, yards of wash averaged 2dwt per cubic yard. Dish tests from the face indicate an improvement op tliis figure. A special sluice box is being rigged so that any single truck of wash can be treated for test purposes No. 1 A North Drive—Cleaning up bottom in the deep gutter was completed during the period. Work was advanced sft from 243 ft to 24Sft from the west drive. The bottom rose quickly to rail level. From 240 ft to 248 ft 5 cubic yards of wash were treated for lOdwt 22gr of gold, equal to 2.lS3dwt per cubic yard (truck) or 272dwt per sq. ft of bottom. The work is now finished. The face of the drive was advanced Oft from 275 ft. to 2S4ft. A very large boulder was met with in the face and constant blasting has been necessary to make any advance. The boulder is still ahead and in the face of the drive. Owing to- the difficulty in making reasonable progress, work in this face has The men have made a 2no f t north” f rom S the° west 1 cross V dri ve. This work will prospect the ground just south of the deep gutter at a place where gold was showing. This gold was not payable, but we intend to investigate the occurrence. General —As stated previously, a special arrangement of a small sluice box is being rigged at the rail level at the mouth of No. 2 tunnel to treat truckload samples. By this means results of work being done will be more quickly available as a guide to mining and development work. The return for the week was 550 z 1 3d wt. Sgr. 3IWELTING PROFITS. (Received November 6, noon ) LONDON, November 5 The Imperial Smelting Corporation’s net profit is £154,984; brought in. £ 1 2,680; preference dividends absorbed, £134,538. Carried forward, 33,126.