MORE MONEY

Wanganui Chronicle, Volume LXXXIII, Issue 19648, 6 September 1926, Page 9

MORE MONEY

ADVANCES TO FARMERS FREEHOLD OR .LEASEHOLD THE BANK OF NEW ZEALAND SCHEME. PROVISIONS OF THE BILL OUTLINED. (Special to “Chronicle.”) WELLINGTON, Sept. 5. The Bank of New Zealand Bill, introduced in the House of Representatives yesterday, authorised the directors to increase the capital of the bank by £1,406,250 in £1 ordinary shares, lor the 1 creation, of a long-term mortgage fund. The directors are empowered to borrow money on behalf of the Bank by the issue of debentures or debenture stock having a currency of 374 years. The amount of debentures and debentures stock outstanding at any time shall not be' greater than three times the amount of the capital paid up upon the shares created under "the Bill, and trustees may invest in such debentures or stock.

Moneys constituting the' long term mortgage fund may be advanced on first mortgage of freehold or leasehold lands, the term of the mortgage to be 37 years.

The' amount of an advance is not to exceed two-thirds of the value of the security in the case of freehold or onehalf of the value of the lessee’s interest in the case of leasehold. The rate of interest on these advances is not to exceed 6 per cent, per annum. The remuneration of the directorate of the Bank is increased from £5OOO to £6500. THE BILL IN THE HOUSE NO PROVISION FOR OTHER BANKS. [Per Prew Association.] WELLINGTON, Sept. 5. When the House of Representatives met yesterday afternoon the Bank uf New Zealand Bill was brought down by Governor-General’s Message. In. reply to Mr H. E. Holland (Leader of the Opposition), the Hon. W. Downie Stewart (Minister of Finance) said it proposed to increase the capital of ihe Bank for the purpose of working long-dated loans in accordance with the recommendation of the Public Accounts Coommitteci. Replying to Sir Joseph Ward (Invercargill) Mr Stewart said there was no provision in the Bill giving other banks similar powers, because such powers had been stated in precise, and not iu general, terms. He had, however, slated publicly that similar facilities would be afforded to other banks.

Sir Joseph Ward said it was understood in the' Public Accounts Committee that such provision would be made in the Bill, and on that understanding he had agreed to it. If the other banks were to be shut out for twelve' months, it would not bo fair. Mr Stewart said the Bill did not make any concessions in taxation to the Bank of New Zealand, but the State was putting its own money into the' Bank at 6 per cent., so that the position was not quite the same as -when the matter was before the Public Accounts Committee. The Bill was read a first time. GOVERNMENT ASSISTANCE NEW RURAL ADVANCES BRANCH. (Special to “Chronicle.”) WELLINGTON, Sept. 5. A Bill to establish a separate branch of the State Advances Office with extended authority to grant loans secured on mortgages of rural lands, bonds to be issued on such mortgages, was introduced in the House of Representatives yesterday afternoon. Power is given in the Bill to establish a Rural Advances Branch of the State Advances Office for the purposes of the business of this branch. The Governor-General may from time to time appoint an additional member of the State Advances Board to represent the interests of persons engaged in the production of primary products. Every person so appointed shall hold office during his pleasure,, and shall be entitled to act as a member of the Board, only in relation to applications for advances from the Rural Advances Branch. The Bill provides that a separate account is to bo kept in respect to rural advances, which are to be made on security of first mortgages of land, exclusive of urban and suburban lands. Advances are' limited to £5500, exclusive of moneys advanced on chattel or other securities under the State Advances Amendment Act, 1922. In order to provide' additional funds for the business of the Rural Advances Branch, the State Advances Superintendent may, with the approval of the Minister of Finance, issue' bonds or stock or other securities which are to be a floating charge on the assets of Ihe branch, including all mortgages securing loans granted by the Superintendent. These bear interest at a rate fixed by the Minister of Finance, but the aggregate amount issued is not to exceed the capital value of the mortgages held as assets of the branch. Bonds and other securities may be is sued in London. The securities issued in the terms of the Bill arc not to form part of the Public Debt, and trust funds may he invested in them. The Bill was read a first time. •“