COMPLETE MORTGAGE dONTROL?

Evening Post, Volume CXVII, Issue 73, 27 March 1934, Page 8

COMPLETE MORTGAGE dONTROL?

In predicting an inevitable crash if the mortgage system were allowed to continue as at pr.esent the Leader of the Opposition made a far-reach-ing declaration which may be regarded as Labour policy. V The State, said Mr. Savage, must face the responsibility of complete control of the mortgage system and the readjustment of mortgages on a basis which would .allow production to be carried on.' '■■*''• . We. do not intend to comment at present.upon Mr. Savage's condemnation of the Government for what he described as insistence on a policy of "rigid inflation." There was, certainly,, lack of vision which led to inflation, but the Government was'not alone in this; and we doubt if rigid control would have been possible v of adoption when prices were rising. But when Mr. Savage Says that there must be complete control of the mortgage system now his statement has wide implications. If the Government is to control mortgages, to readjust debts, and,'in a few words, to reapportion assets as between mortgagee and mortgagor, it cannot stop short at that point. If the Government says to A, "You owe B

£500 on this land; take your bill quickly and write £250," it leaves A free, if values recover, to pocket the amount written off. B has no remedy. Complete control, to retain any semblance of equity, involves; complete control of the security as well, as the debt on that security. Control of j mortgages, in fact, • is, wholly inconsistent with -private confrol of the assets mortgaged, and with private ownership of anything ' given as security for a •;debt. Is this, what Labour advocates?