FARM MORTGAGES
Plan of Relief Being Prepared TWO BILLS IN HAND Thorough Probe For Constructive Views Keen Ministerial effort is being made to complete the Government’s legislative proposals so that Parliament may resume its adjourned session on the tentatively-appointed . date —February 13—but there still is doubt as to whether the two Bills dealing with mortgage finance can be finalised within the next fortnight. Both have been given complete form in the rough, but each has yet to be shaped to the final policy of the Government. As already mentioned in "The Dominion." the larger of tlie two measures —the one providing for the establishment of a national mortgage corporation—has been drafted in legal phraseology, but many details in respect of the proposed powers of the corporation, financial resources and the scope of its activities have yet to be revised. The other Bill, which is being devised to set up machinery for the rehabilitation of farmers’ finances, is almost ready for the law draftsman, but it also will be subject to thorough revision after the Rt. Hon. J. G. Coates, as Minister of . inance, has completed his comprehensive investigation of the problem. Moreover, when all the preparatory work has been done both measures will have to be considered by Cabinet. It is probable also that the Bills will be submitted to a caucus. It may be said again that the preparatory work of the Minister of Finance lias been extraordinarily thorough. In addition to numerous conferences with representatives of mortgagees, such as banks, insurance companies, stock and station agents, in all the metropolitan centres, the views of mortgagors have been sought and obtained over a wide field, covering every interest involved in the projected legislative proposals. A Ministerial Questionnaire. Information regarding mortgagors is being sought from tlie chairmen of the Mortgagors’ Liability Adjustment Commissions throughout the Dominion. It has been ascertained from a representative of those approached for information about the views of farmers who have mortgage obligations that a questionnaire lias been circulated among the Adjustment Commissions. The questions, numbering about 25. are comprehensive. All probe to the cijre of the mortgage problem as far as financially-embarrassed fanners are concerned. It. i.s impossible, of course, to review the questionnaire in detail, but an expert who bus studied it and gleaned information from farmers about it says tlie questions reveal the clearest proof that the Minister has aimed at secu*> iug full knowledge not only about the financial difficulties of farm mortgagors, but also about their opinions and their own ideas concerning the legislative proposals on the lines generally laid down in the four special articles recently published by Mr. Coates. It is certain that the Mortgage Adjustment Commissions have been long enough in service to have acquired dependable information, particularly as to the extent farmers are losing heart in existing circumstances, the degree to which farms have gone back, and the difficulty of raising additional finance during the long period of economic strain. Budgetary Control of Farms. As far as can be ascertained, there Is likely to be an avalanche of replies, unanimously asserting the necessity for some form of relief, but, according to non-political experts, there probably will be a considerable difference of opinion about, the methods for affording it. This difference is likely to be most marked in respect of the proposed budgetary control of mortgaged farms and the period such control should be exercised under a court of review. Then (here are the problems of guarantees, special provisions for stock ami chattel mortgages, the determinalion of equity at the end of, say, live years of budgetary control, and ".he sharing of losses between the first, mortgage, the second mortgage, ami other secured and unsecured creditors. The small farmer naturally is anxious to know how areas too small for profitable working are to lie dealt with under (lie projected legislation. Town Properties. Also, there is the controversial question, "Should the proposed legislation apply to urban property, and also to suburban farms?” What is. said to be the last question in (lie Minister’s comprehensive list is one that most people throughout tlie country , would answer without a moment's hesitation: “Do yon deem it desirable to discourage a repetition of land value inflation such as occurred in tlie past?” It may lie more difficult, however,, to answer in an acceptable way tlie inevitable question as to what practical steps are possible to discourage./and even to prevent a repetition of tlie main cause of farmers’ linaneia! troubles. It seems probable that coinpjetely satisfactory answers to alt tlie .questions arising from the problem ofifartners’ finance will not be obtained until the Minister's legislative proposals have been submitted to Parliament. Then, beyond a doubt, there will be a barra”e of queries about tlie details of the scheme. Meanwhile, representatives of all tlie interests primarily concerned are being given apipie opportunity to help tlie Minister, and Parliament later, to devise a practical method for assisting financially distressed farmers.
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Dominion, Volume 28, Issue 106, 29 January 1935, Page 10
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824FARM MORTGAGES Dominion, Volume 28, Issue 106, 29 January 1935, Page 10
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