MORTGAGE PROBLEM.

Hokitika Guardian, 14 August 1923, Page 1

MORTGAGE PROBLEM.

SOLDIERS’ PLEDGED LANDS. WELLINGTON, Aug. 9. If as a result of negotiation the central board controlling soldier settlement comes to an arrangement with private mortgagees for the purchase of their interests bv the Crown the .Minister of Finance is authorised under clause 10 of the Soldiers Settlement Bill to make the payment to the mortgagee, if the latter agrees, by Government debentures bearing interest not exceeding 5 per cent.

“What is the extent of borrowing power contained in this clause f” asked Mr Yeitcli, who said tliaL when loans were authorised bv Parliament it was

usual to specify some limit, but this .hui-e fixed no limit. "We are gelling into the habit of dealing in millions as if they were half crowns,” he mid. “It does noi appeal to a man iif my nationality.”

The Prime Minister replied that the ■|moilii. required to release all private ■Mortgages in respect to the soldiers’ hul ls was f 1.100,000, but it would not he necessary to expend the total sum In this way. Mr Wilford staled that the ordinary power of sale which the first mortgagee could exercise through the •supreme Court was a safeguard against reckless expenditure. No doubt some if the men who sold land at high ariccs to soldiers, taking v.liat cash ,T.c Government advanced and giving a scrond mortgage for the balance, would make a gallant struggle to get ■is much for their mortgages ns pos■ihlc, although many in their hearts knew their second mortgages were not worth 5s in the but they would start with a demand on the central control board for 20s in the .L'. Tho legal safeguard he had described would make second mortgagees realise that their securities were not worth the paper they were written bn. He dal not advocate its use unless some recalcitrant mortgagee would not play the

Mr Yeitcli declared he was obliged to make a protest against carelessness in public expenditure. It was a case of "it’s only a mailer of a million. Let us hurry up, pass it in a minute and get. away to London.” Mr Massey strongly denied the suggest ion that there had been carelessness in handling public money. On the contrary there had never been such efficiency. He deplored the introduction of party politics into a matter affecting the interests of the soldiers. Mr Willord: He did good service by ascertaining the amount of liability. The I Ton .1. Pai r. M r Macmillan (Tuuranga). Mr At more Nelson) and Mr Yeitcli joined ill a controversy as to whether party feeling had aetualed Hie criticisms from the member for Wanganui until Mr Massey interposed with a protest against the proceedings becoming a farce. The clause had been before Parliament several days and he had mentioned ii" limit of liability. when asked for it.