MORTGAGE BONDS

Press, Volume LXXI, Issue 21412, 2 March 1935, Page 14

MORTGAGE BONDS

♦ GOVERNMENT EXPECTS READY MARKET MINISTER FOR FINANCE QUESTIONED DISCISSION IN THE HOUSE flroin Our Parliamentary Reporter.! WELLINGTON, March 1. Tr.e Government's belief that the bonds issued by the Mortgage Corporation of New Zealand will be particularly attractive to private investors was emphasised again by Lie Minister for Finance (the Rt. I lor,. J. G. Coates) in the House of Representatives to-day. Replying to Mr Rushworth (Ind., Lay of Islands) the Minister said r.'iut the bonds would be more attractive than the existing rural bonds.

Mr Rushworth: But what is the Minister's reason for saying that? An explanation would be very helpful. Mr Coatcs: There are very good ivasons. Mr W. E. Parry (Lab.. Auckland Centra!?: From which the House should not be excluded. They might alter our opinions about the b,!l. Mr Coales: I do net want the honourable gentleman particularly !■■ alter his opinions. Mr Parry: Then you are going to keerj us in the dark? Mr Coates: There are certain matters which cannot be talked ;<bout from the housetops. All I can s:<v is that I know the first bond issue will be very satisfactory. Replying to Mr Rushworth's sttgcestion that a list of the bondi'oklcrs of the corporation should be ripen to public inspection at a 7'ominal fee in the same way as a ]:<4 of shareholders, Mr Coates said that it would be impossible to keep track of bearer bonds. Mr Rushworth: Will it not be poss.bie to discover who the bondholders fro?

Mr Coates: Only if the bonds ■were registered. But some people will prefer bearer bonds, and will prefer to keep them or hawk them, perhaps Issue of Bearer Bonds Several Labour members, including the leader of the Opposition 'Mr M". J. Savage) and Mr P. Fraser (Wellington Central), claimed that an issue of bearer bonds was nothing but a measure < f inflation, and tha*. the Government was most inconsistent in its continued objections 11> currency expansion. Mr Savage argued that a bearer bond was almost as good as a bank note in circulation. After some discussion, a clause in -the bill empowering the corporation -o issue bonds or stock was passed on the voices. On the section which provides for Ine appointment of the State direcv.rs of the corporation, Mr R. A. Wright (Ind., Wellington Suburbs) ; •-■kc-d the Minister if the State directors would be holders of shares. He had not been able to discover

:-:iy clause which provided for State Erectors being shareholders. Surely it was essential that they should 1--:vl' some interest in the corpora--1 !'■'*.. The Hon. J. G. Cobbe, who was temporarily in charge of the bill, exPaired that Ihe State directors v.oukt not necessarily be shareholders. The proposal to appoint joint > yjnaging directors for a term of .even years was challenged by Mr V>\ A. Veitch (Ind., Wanganui), who .s.id that it was entirely a new plan. "An Important Point" is the honourable gentleman moving an amendment to the sub- < 'nu«c?" asked the Chairman of Committees (Mr J. A. Nash). * "No," replied Mr Veitch. "I want to be merciful. I realise that every .- :n<.':>dment won in this fight will be ;i other auger hole in the Finance r.Tiri'-tfv'r; own boat." Mr Cobbe said that the point r.-o-ed by Mr Veitch was an import- .- -;t one. but at the same time it had to be recognised that the position of etch director would be a full-time job. Moreover, it would be neccs- . ;>ry to get the best men possible, and it could not be expected that :-i!ch men should be appointed on a ye:.r to year basis of engagement. Labour members: What do you propose to pay them? The Minister did not reply. Two minor amendments, to reduce I'ie terms of appointment of the managing directors and the State directors from seven years to five ;oid from five to three respectively, ••.•ere rejected on the voices, and the c'aure was passed without amendment. LADY BLEDISLOE <» ,\ LETTER OT FAREWELL PRESENTED I'!.Z-;.i *.SSOCIATIOX TELEGRAM.) WELLINGTON, March 1. Enclosed in a beautiful casket of New Zealand woods, made by disci bled soldiers, a letter of farewell from the New Zealand Women's Institutes and the Women's Division of the New Zealand Farmers' Union was presented to Lady Bledisloe l iii:s afternoon by the respective presidents, Mesdames Paterson and M. M. Ward. The letter expressed appreciation of the assistance given by her and gratitude for the many kindnesses received from her.