HOBBLED INVESTMENT

Evening Post, Volume CXXVIII, Issue 118, 15 November 1939, Page 12

HOBBLED INVESTMENT

RIGHTS OP LENDERS

CANCELLED COVENANTS

'^Evening Post," November 15.

_■ Rights arid neecjs of lenders sacrificed XX, 'Xx. iri the interests of borrowers was one v 7 ; 7 of the features in a recent speech by ~"■ Mr. F. N. Yarwopd, chairman of the y;7'/7\ Permanent Trustee Company of New j// Sbuth Wales. ' The trust and agency |;7 •■•- figures, he -said, /totalled more than | y£21,750,0C((), and it was estimated that i fyX. s this represented the interests of.beXX y tween.Booo and 9000 people. He had iy 7 7; L had more than the average opportuXX: x 7/ pity of realising the eeects of legislay.X" -X-- tion- dn.investment. "Under interested 7 x_. pressure in 1930, what is known as the ;^^'Moratorium Act' was passed," Mr. XXX ';■ 7 Yarwbod explained. "It extended the Xy-.x /.; time-for repayment of mortgages until XXy.- 1^1933. Thi4 was extended by further j^7 legislation, first,to 1936. then to 1938, y. y and then to 1940. Nov/-if. is reported 7 7 A,that it has been furtner extended to 7/ |y/1943. The rights and needs- of the *;:7 f> lender and the fact that the properties• 'iX-y j,'f ■ are getting older and.older seem to be y...y-9'y altogether ignored. Some.people may 'r.'1 47/' think that this is good business,, but v-.--..■.'—?''what is the real effect of this interfer--7: '7: -ience with private contracts? . The maj--7 .iyority of investors are now shy of what // i .-'7. used to be considered as.;.a first-class ■7 security, .and would-be.*..- tenants. :'*|7''iare. ■ being ■ forced to become purh. chasers, no matter how uncertain the ■ il; location of their/future activities. Some ' . f{!" of • those' indnaduals- who have bene--7~. Ir'" flted may talk-if they like; but as a / ;!i ;matter of benefit to the country at-. / 7 :■••;: Jarge, this legislation has been a sad Xy'- 7 'and costly mistake. The use of Par- :;; yfliamenfjary. control-7.is ■<all-powerful Vy -y in; the7cbmmuriity,-.no doubt,\but an -.- ■'■■'■ i-7yabuse of it has, unfortunately,. been 7 -■' /done and repeated in this case—mores y-7 . ■■■?.:x*9teX.fjsity. •■/.;. yf'x'yx. ..*•■*.-:'7V** : .x/ ' /■■/..CONFIDENCE ESSENTIAL. "It is only common sense to say that confidence in investment is the very ,-:■'- first essential for the - well-being of a .!■■ y. the •community, and it cannot be expected that Australia will become satis•l'j77;aact6rily and fully populated as it if!;7;shbuldr be if those who have money '."'/. &/vfe»-dnvest are.not allowed to-handle and »-/#JSiitrol the,, properties, .for which they .: WXr' Xxiuky have -paid*/; The .Moratorium Act, ' ; f^Styhave -no in saying, has :,:--*..-'y^''bfeen,-. arid is>'"' a very grave injustice : v/Atbi- the unfortunate lenders. : ; - yf:y>yCaricfeliing;/ the Personal Covenant '. 7y /w?.as a colossal blunder, and if cir- : .';■':.•-' : ;., -bumstances were stich that it was abso- ■ ■:7^7ltitely necessary in the public interest ; 7 give some relief to certain mprt--7/7 7|77gagors -in 1930, 'it should have been x-, - : .^ijdqne, hot at/ the expense of the mort,:^gagee for the. time being, but by the "H: |?p©overnment itself taking over the :",:." B.|t^pbligatibris and paying-pfE the original ' ji^finortgagee out of public funds, in, at 7 .fftMTfttie iv^rySleast, the necessitous cases.XfXyX "As it is, the legislators have been 7 Ifc generous with other people's money, : jl^ Vaiifl in very many cases grave and ■ yyrV serioi^. hardship to lenders has -,re-' ;:-:77^suited."* : ;; ■ „- v x y: = XfiX- - 'PQMjCY .OF. : iNTERFERENCE. / 7^'-'.-' Dealing- with "fair rents" Mr. Yar- -\- ifXi wood7said the-present attitude of. the •'■y Stafe' Government- seemed' to be that i *!' intel:fei ience, with/the rights of owners y. -shoind^be-^iiFpflblic 7ptolicy^; "As a 7 matter of fact,, everyone who has had ' $XX any experience of property manage--.'"-•■"•:.i^r.' ment knows that there.are very many ';. 7! bad tenants, and, after all is said and, 7 %XX done, it is much better to leave any :'• difference" of opinion as to the condihllf vtioris as between owner and tenant to 7 •.%:-'-^til*e?.vitßglf.tunder;: i .the' Jaw of supply ■'; •'•' L.^\7an^ then. y :tl^^ne^fifl, ;ahd'keep7hhy/rapacious -llyv^Siiii&rd^within /reasbhablei-bounds if; '-■'■' H^/Ift^,-b\lildih^ df small .houses is a pro-- "'■■'.-" ;/:777-fitaisig: :-a'nd-.safe investment, for capi- . ' }>7 7t^l;;:,That'in any case a perfect state 7;- bf affah-s will be attained under any f' - 'systemi is the dream of a visionary, •:>7' -arid interfefence/with property rights. ■"-'•■?! xX ;hag. many and serious repercussions." |y 7,: Reference, was ; also, made by Mr., y .Yarwood. to.the lax attitude of local; 7 ,authorities in7.allow.ing xates to go uhf7 -paid, and*, when the mortgagee entered, v 7 mto possessibni' coming on him ■'■XX 7JTV-ith/a^hfeavy billcfor/uhpaid'rates. It ,7- -:^7-7>iJ!jra^^iost unfair/^hd7urir6ascmable that : ■7 -^:7::';a7/fiauei^ry"-should X be,/^personally -■ re- ■ x'y v'%F?Oßsibl€:/for a liability arising but of ::': yy^his^triist.'-.',- ':•" x-y. * 7 -yxx::, ■■-.■y

|p7>|i:^bREICI^;'EXCHAN.GES 77 'y'7(By'7* feiearauh^Prpvs 'Ass..'«-i'iii.i'.ir. • Xy?^y^xXyiX.:..y ,L6Nl>oX„>November., 13.7 ■ i "'ATticla y*s 7\cloS^rig:'. rates:7for': fqr.el&i-\exclianges 'In relation to ■'. sterling:- compare ..with those pre-, Yiousily' c^bie^aplfol'lo^ X"-\ ■ y .;••;• •• t -^7"%^'.pjir7'7'-77?ipv7 itf- >?oy- i3.*;i "^'r^ols. Ult<T r £--.' 4.SGG ;■' 4^03 74.03 M ■p ar j s . ' • "' •". . Francs to S . 124.21 -. 17GV B I7GH: '.'.'' TAmsterdam — _ ■ Florins to £ . 12.107 7.50 7.5 a .HomeLire to. £ .. 92 73.50 7;>.50 Brussels—' ■ . * Belg.. to '£ ' . 48.611 24.35 24.35. •Stockholm— ..-•". Kr. to. £ ... 24.43 10.80 -16.80 Copenhagen— • ■ '■_.--. Kr. to £ ... 18.150 20.00 19.75 ■A:flSts"dSr\.-,- - " ':14 63-64 14 63-64 '^Shanghai— . - „ . . d., to dol. .. -i , 51-8 55-32 . :'*' •*L ;.•■'.. ).. ■ ; <3.M0. yen .'*. .^24.532 14 21-32 14 21-32. 7 The price of gold Is unchanged at IOSs an ounce. •■ • . . STERLING IN NEW YORK. (By Telegraph—Press Association—Copyright.) NEW YORK, November 13. . Sterling is quoted at 3:93 dollars to the £. The rate opened at 3.88 5-8 and reached a,peak of 3.96. NEW YORK EXCHANGE. N <By .Telegraph—Press, Association— : CopyriKht.) NEW YORK,'November 13. The turnover on the New York Stock Exchange. today totalled. 650,000 stocks. NEW YORK PRICE? OF TIN. (Br telegraph—Press Association—Copyright.) LONDON, November 13. Tin is quoted at 51 cents a lb. KANIERI GOLD DIVIDEND. Directors of the Kanieri Gold Dredging Company, Ltd., announce an interim dividend of ls aTshare, payable on December 157 7 The dividend relates to the company's year that will end on March 31, 19407. MOLYNEUX DREDGE RETURN. (By S'elfuraph I'ri'ss l DUNEDIN, November 14. For the week ended November 3 the Molyneux Gold Dredging Company's dredge operated 127 hours, recovering , 124 ounces of gold. SIUUKSs AND SHAKES. o U V X6.^:'\j"'-k xti'X&y it* AA ■. C 5. Shscrebrulier ' " ; - Member Wellington Snick Kxcbnnee II r Customhousi; Qua* ■telegrams, ''Beta," Weliintjion. .'