Government's Proposals Examined

Evening Post, Issue 29, 4 February 1935, Page 13

Government's Proposals Examined

REPUDIATION OF CONTRACTS

Business Men Suggest Alternatives

The conviction that it is possible to evolve a'scheme for the final adjustment of mortgages without creating the proposed Mortgage Corporation, is expressed by .the Associated Chambers of Commerce in a statement issued today. The statement embodies the findings of a national conference of commercial and financial interests which was assembled under the auspices of the Associated Chambers of Commerce, and which through a special committee made an exhaustive investigation of the Government's proposals, for the establishment of a national mortgage corporation and for the rehabilitation of farmers' finances. The particular interests represented at the conference were the Associated Chambers' of Commerce, the Associated Banks, the New Zealand life insurance offices, the New Zealand Law Society, the Stock Agents' Association, the New Zealand Fire and Underwriters' Council, the New Zealand Investors' Protection Association, the Building Societies' Association, and investment companies, .and the statement which has been issued is a unanimous expression of their views. The, committeeregards the rehabilitation proposals as "unsound, unjust, and dangerous,",and believes that justice can be.done to all parties'concerned, including "the farmer mortgagor, "without'wholesale repudiation of contracts, and witlvbut:. the- unjust discrimination against one.class of the community—the farmers' creditors." As an alternative to the Government's proposals it is suggested that the present relief legislation be extended to Deceniber 31, 1939, and that the existing adjustment commissions be reconstituted on the lines of the proposed special Court of-Review with an independent, chairman and two associate members-one-representing mortgagors' intereste generally and the other representing mortgagees generally thus-increasing public confidence in: these tribunals.. So far. as State mortgages . are concerned, the committee has suggested the creation; of. boards with .full power to effect' settlement with these mortgagors. Such settlement of State mortgages would be attlie' expense of the whole community, !ahd -would not prejudicially affect any^^ particular^sectioni: "