FINANCIAL.

Hokitika Guardian, 29 June 1927, Page 1

FINANCIAL.

FINANCING THE FARMER. Speaking in Dunedin recently on financial matters, Sir Geo. Fenwick said : “Referring again to the complaint heard from time to time that investors do no now, for various reasons, look with the same favour ns hitherto on mortgage securities, it is possible. and even probable, that an increase in the mortgage interest rate would again attract investors to this class of security and provide a good deal more money for this particular mode of investment. This may ho the view and the desire of some who have moneys for investments, but T decline, to the larger and saner view, that it is unsafe and undesirable to have, the ruling rate of interest at a high level. To have ample funds freely available for the financing of mortgages for farmers and others is of little use if the interest rate is such that the employment ol such fuiuKtn advantage is made an economic impossibility to tbe would fie borrower.”

THE RATE OF INTEREST. Speaking at the annual meeting of Perpetual Trustees. Ltd., in Dunedin Sir ‘Hen. Foil wick said tkat durj„g‘ the mist vear the current ruling „,to of interest for first mortgages remained stationary at. 0 per cent m Of a fr o and Southland, and OV to , per 'cent in the North. At the moment the tendency as for the rate to harden somewhat. “H follows o ro ur.sc,” be added, “if the banks find it necessary to continue the increased rate for any length of time, that the mortgage interest rate may have to be increased also, and thus farmers ami others would be placed in a more difficult position with respect to their finance.”

ISSUE OF DEBENTURES. Tim Auckland Harbour Board _ decided at a recent meeting Jo issue ~ further £7,0.000 worth of debentures autliorifv for which has already' been obtained. The rate of interest is to be fij per cent and date of maturity. July 10 194,. chairman (Air 11. R, Mackenzie) ami this was the second instalment of i Cloo 000 loan that had gone belo.e t.ho Finance Committee, and been approved by both the board and the Afinister.

RENT RESTRICTION ACT. The, Rent Restriction Act. whio ' was framed as a war-time measure or the protection of tenants, was xtemlod to the 'beginning of Angus next. From that time till Janmuy 1, 1928 tenants will be given the right to‘apply to a magistrate to fix reasonable ' rentals for their tenements Although this legislation is fixed expire on January 1 ’'ext. it is like > that, Parliament will l>o approached during the coming sessions to pass further legislation applicable to tin larger cities.