FALLING VALUES

Hokitika Guardian, 16 July 1926, Page 4

FALLING VALUES

AUDITOR-GENERAL*S ACTION. WELLINGTON, July 13. The Auditor-General reported to Parliament to-day on a dispute which had occurred with tho Public Trustee in the course of' his duty. As it involved an important principle affecting renewal of mortgages on .property where the value lias fallen, the matter aroused considerable interest among members, who showed an anxiety to. discuss the formal paper, though, they did not know exactly what it contained. Tho explanation was made by tho Prime Minister, who said that lie happened to be the Alinister in charge of the Public Trust Office when the dispute occurred. He was anxious for tho House to know the circumstances, because ho was' afraid that the report might otherwise be looked on as serious by some members. The position as lie understood it was that the Public Trustee was bound under statute in connection with the maximum amount he could lend on a property in relation to

its value. Tho loan must not exceed there-fifths of the 'Government valuation. Some years ago the Public Trustee advanced a sum of money for five years. According to the Act, there had to he ‘a revaluation at the end of tho period if a renewal of mortgage wits required. In this case, it happened to be ft widow who needed renewal, and tho valuation showed that tho mortgage would be approximately £2” over the amount which the Public Trustee, in strict law could lend to lier on that security. The Public Trustee, liowcioi, took uj) the attitude that lie was not prepared to further burden tbe mortgagor. who would not be able to pay the £27 and interest. She had always paid interest and sinking fund, and he decided to renew the mortgage at the original amount. To this the AuditorGeneral took exception, and, said Air Coates, technically be was correct. He had drawn the-attention of Parliament to the matter, and the name of the Public Trustee was brought before the House. This kind of thing might occur again, because a property might recede in value even 50 per cent and the only hope of the Public Trustee in iccouping his money was to- allow the mortgage to run and to sonic extent ignore what tho Act directed. -Sir Joseph Ward remarked that ti e matter was so important that the Prime Alinister would he wise to give the House ail opportunity of discussing it by moving that tlie paper be printed and referred to the Public Accounts Committee. The Prime Alinister said that he would agree to this course, because it

was possible that certain legislation would bo necessary, not in this case, but in some otlieir cases of renewal of mortgages where a, certain amount of discretion was necessary in. calling up mortgages. Lending institutions had themselves asked for more latitude in tho matter, so that it would again come up in the shape of legislation. FLU TIME IS HERE. LET PU LAI ON AS SHIELD YOU. From now on for the next few months, the deadly influenza germs are on the warpath. In fact, they’ve already made many conquests, and in(luenza is prevalent in many districts. These invisible little enemies are likely to attack you anywhere—in tramcars, in schools, in tho office, at the theatre. Ann yourself with a tin of Pulmonas. These powerful antiseptic pastilles have proved invaluable in combating the flu germ. By taking Pulmonas you impregnate the breathing passages against infection. In cases where influenza has already been com trncted the healing antiseptic vapours from Pulmonas soothe and bring relief. Pulmonns are also invaluable for coughs, colds, bronchitis, and all infections of the throat or lungs. Suck them slowly. Get a tin to-day from your chemist or store. Is Gd and 2s Gd Hie largest size is most economical.