The Hawera Star SATURDAY, DECEMBER. 20, 1924. THE MORTGAGE PROBLEM.

Hawera Star, Volume XLVIII, 20 December 1924, Page 4

The Hawera Star

SATURDAY, DECEMBER. 20, 1924. THE MORTGAGE PROBLEM.

Delivered every evening by 5 o'clock tn Hawera Manaia, Normanby, Okaiawa, Elthanr Mangatoki, Kaponga,- Awatuna, Opunake, Otakeho, Manutahi, Alton, Hurleyville, Patea, Waverley, Mokoia, Whakamara, Ohangai, Meremere, Fraser Hoad, and Ararat a.

The effects of the period of inflation are still being felt, and those "who have studied the position carefully think that it will still take considerable time before the evils are at an end. Mortgages have been reduced in some eases; in others the burden of the mortgagor has been eased by reducing the interest; but the fact remains that the laud is carrying a heavy load and. farmers find it very difficult to secure financial accommodation. No doubt, many people and institutions with money to lend are waiting till the moratorium ends and what the effects will be. From what we can learn there is money in the cities available for investment, but naturally in view of the experience of the difficult years through which the country has been passing lenders are exercising great caution. The failure of farmers, to secure the money they need does not necessarily mean that land has ceased to be good security. Where it is at a reasonable price and not too heavily loaded with mortgages, land should be as good security as ever it lias been, but in cases where it is carrying heavy mortgages it would be bad business for lenders to add further to the load. On the other hand, the position of many farmers is very difficult. A certain amount of money is required to enable them to work their land, and they are finding it most difficult to make ends meet. The money from their milk is mainly going out in payment of obligations undertaken in the boom period, and the outlook from their point of view is not encouraging. Finding the ordinary channels by which they could previously raise money are now closed, they have applied to the State lending institutions, and the Advances Department holds a long list of applications, totalling /some £18,000,000, and the strain put upon the Department has been extraordinarily heavy, resulting in lengthy delays. In conversation with Mr J. R. Corrigan, M.P., we were given some detailed information of the block and howit is affecting applicants. Oases could be quoted of applications nearly twelve months old which will not be decided until March next, and it. is not to be wondered at that the applicants are feeling impatient. They have hoped to receive' assistance in readiness for the lifting of the moratorium, and the position is such as to cause them anxiety. The Department, it is admitted, is doing its best, but such an enormous demand upon it was not anticipated, and the result is that the applications cannot be met for months after they are lodged.. It is difficult to see what the position will be after the moratorium is lifted. We believe that the excellent seasons and the satisfactory prices of dairy produce, coupled with the great advance in wool prices, have placed the country in a much sounder financial state than it was three or four years ago, but even so, as far as one can judge, losses appear to be inevitable. Let us hope that -the people concerned —mortgagees, mortgagors and the Gov-ernment-will do all they can to save individuals from serious loss. Much can probably be done if the problem is approached in the right spirit and if reasonable methods are adopted.