MORTGAGE ADJUSTMENT COMMISSIONS

Press, Volume LXXIV, Issue 22509, 17 September 1938, Page 22

MORTGAGE ADJUSTMENT COMMISSIONS

TO TBB EDITOB Or THB PBES». Sir.—" Agricola" makes some truly startling statements, but I am with him when he says there is "a need for all dealings of those commissions to be publish sd in full detail." I have contended for some time that this should be done—but for a different reason. I want honest farmers who stood up to their mortgage agreements ,to be known, so that they will not be handicapped when they want money in future. At present lenders have a deadly fear of farm mortgages, which under a Labbur Government have proved to be mere "scraps of paper." ' But what nonsense "Agricola" writes! He says,.; "Mortgagees whd lilnt on fictitious rinflated "values, allowing the vendor to get off with the spoil, should be the first to lose." Is he not aware that most mortgagees know absolutely nothing of land values? They have money to lend for income purposes. It must be safe, so they consult their solicitor. A loan is suggested; a practical valuer is called in, and the-soli-citor recommends lending three-fifths, of that valuation. The triangle in this-! case is A, the seller, who can hardly be blamed for trying to get a high price, B, the buyer, a man supposed to be a practical farmer who should know tho value of what he is buying, but apparently does not, arid gives twice what the land is worth. Then we have C, the only victim, whom "Agricola" declares to be the' villain of'the; pierce. Why?: • Because he lends his money to B.

; It is quite, possible that we may again' see land improve in value and reach higher values than ever, but I prophesy to." Agricola" that he; will not see his'friends,-'the mortgagors, re-; turning the losses to the' -mortgagees in the form of conscience money.. The real truth is; that the farmer who paid too high a price for his farm showed thereby that he did know his job. Even although the price has been written down by this Labour Government at the expense of the lender, those farmers will soon be making further appeals for reduction. , Many of them are probably even now neglectine their farms to go on public works, and when they get their farms written down to nothing, they will claim a dole allowance to keep them from starving. I, of course, allude to that •class of farmer who cannot farm. Most practical farmers will tell you there are many such and it is no kindness .to keep them on their farms. Under Socialism and in Soviet Russia loafers and incompetents are not tolerated. Everyone must pull their weight. In reply to "Nevermore"—my reply to "Agricola" covers the two cases cited. The farmer who went on relief or sustenance while retaining possession of farm and all produce, and yet "paid no interest rates or other charges," deserves, no help. -Yet this "amateur court" will probably grant him more relief -than )the man who did his best to maintain his farm in reasonable. condition. But in the second instance who got an extension of time arid - reduction of interest and is' still unafile to pay interest on three-fifths "of the purchase money wauld'.>be better to toy some other job. Vffy many farmers have brought their farms through the slump without having to .victimise' the public, and oh present produce prices will, I hope, now get their .reward for their lean years. Land at present prices is now probably the only safe investment for.the man who will farm thoroughly. —Yrmrs, etc.,

September 16, 1938. [This correspondence is now closed.— Ed., "The Press."]