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Hokitika Guardian, 29 August 1925, Page 2

“From time to time’’ (states “I be Banker.” organ of the New Zealand Bank Officers’ Guild) “references have been made to the mortgages extension and stamp duty legislation, and to the incomprehensible attitude adopted by some members of Parliament regarding the proposed alteration to the Bills of Exchange Act. so that in New Zealand banks may have the same protection against negligent drawers of cheques as the House of Lords lias given to English banks, lhe mortgages extension legislation is on its wav to oblivion it should have lieen strangled in the year 1915,” holds “The Banker”; essentially an antipanic war measure, its death agonies were prolonged for twelve years, and it is one of tho causes of the dislike private lenders now have to lending on mortgage against rural lands. Many ) private mortgagees have decided that they will not risk being bitten a second time (mortgages to banks and stock and station companies were not affected !>v the Act). Then there r amc the expedient of putting a stamp duty on mortgages. AVliere the equity of such a duty lav, nobody has boon able to show. Tf a man had cash, and was thus able to pay outright for a property, he was not affected by the duty. Mon who could not pin nil cash (and they are in the mobility) and had to give n mortgage, paid'duty. So the well-to-do man got off free, and his poorer neighbour had to pay. The original Act was altered from time to time, hut through its faulty composition, conflicting Court .judgments, and the various decisions of the Crown Law Office and rim Deputy Commissioners of Stamps, the result was and is a nightmare to all who had anything to do with the preparation of securities. From being a purely taxing measure there seems to he a danger of its operation affecting the property law of the country, despite the existing statutes governing landed property. However there is yet hope of salvation, and solicitors. managers, accountants, and security clerks will all be relieved to learn that the Prime Minister has announced his intention of repealing the duties. Tt is good news, hut years overdue, and the tardy recognition of the inequity of the tax stresses the need for more commercial men in our Parliament."