SECURITY FOR FARMERS

Wanganui Chronicle, Volume 79, Issue 58, 11 March 1935, Page 8

SECURITY FOR FARMERS

FURTHER LEGISLATION MORTGAGE BILL ONLY PART MINISTER OUTLINES PLANS [ Psr Press Association ] AUCKLAND, March 10. The eflforts being made by the Government to rehabilitate the farmer, were outlined by the Minister of Finance, Hon. J. G. Coates, speaking at the Kumeu Show. Dealing with the Mortgage Corporation Bill the Minister said a good deal of criticism had come from people who contended that the Bill would not help the farmer nor reduce his load of debt.” It should be made very clear that the Mortgage Corporation is only part of our proposals/’ said Mr. Coates. 4 ‘ The main pulposes of the Corporation are to provide finance at lower interest rates, «ud to place mortgages on a sounder basis —that is a long-term table mortgage. In addition, the Corporation will lend up to 80 per cent of the valuation of a property in any eases where mortgage adjustments are being made. 4 4 The Rural Mortgagors Final Adjustment Bill to be introduced on Tuesday, is perhaps the major portion of the legislation/' continued the Minister. * ‘ This provides — "(1) That no competent farmer will be put off his property merely because the depression has reduced his ability to pay his debts. “(2) No creditor can sue him for debt if his is a case of which the Adjustment Commission approves. * 1 (3) For a period he shall work with his income so allocated as to give him reasonable living expenses and working expenses, etc., the rest to go to his creditors. “ (4) At the end of the period the property is valued, mainly on its earning capacity, to determine what amount of debt it can carry. “(5) The rest of the debt will be written off. li (6) That where it is deemed fair and reasonable, an equity of up to 20 per cent in the property may be given to the farmer. This does not mean that in every case 20 per cent, of equity will be allotted. Mr. Coates said the whole proposal was designed to put the farmer on a sound footing where he is no longer in danger of being sold up. No longer would the farmers be losing heart in the face of intoterablp -Ip''” burden.