MORTGAGE CORPORATION.

Wairarapa Age, 28 May 1936, Page 5

MORTGAGE CORPORATION.

RECONSTITUTED UNDER NEW NAME. WITH EXTENDED POWERS. PROVISIONS OF GOVERNMENT BILL. (By Telegraph—“ The Age” Special) WELLINGTON, May 27. The Mortgage Corporation of New Zealand, in future to be known as the State Advances Corporation, is being reconstituted with greatly extended powers under the terms of the Government’s new measure, introduced by Governor-GeneraPs Message in the House of Representatives to-night. The Hon. W. Nash, Minister of Finance, explained not only the terms of the Bill, but much of the policy it embodies. The change in name was, he declared, of some value, as it brought back association with the splendid work don© by the pioneers who decided that money should be provided for the people at reasonable rates. The shares of the corporation would be cancelled and there was a provision for the return of the money subscribed and one dividend would also be paid. The board would be entirely reconstituted, except, for the fact that the two- managers remained as managing directors to carry on the work and with extended responsibilities. Mr. H. 8. Kyle: “The same old board under a different name.”

Mr. Nash: “No, a different board.” He explained that the board would take over the administration of the Housing Act and would undertake important functions in connection with raising money, with the right te issue bonds which would be guaranteed by the Government and would therefore be raised at a lower rate of interest than was usually paid by a corporation. There was provision for loans to local authorities for housing and also an extra provision for loans to industries.