WELLINGTON NEWS

Hokitika Guardian, 24 August 1928, Page 4

WELLINGTON NEWS

FARM MORTAGES. (Special to ‘.'-Guardian.”) WELLINGTON, August 22. At a recent meeting of tlie Farmers’ Union at Master,ton there was a discussion of farmers finance with particular reference to mortgages of farm lands. One speaker suggested that mortgages on farm lands should receive preferential treatment in respect of taxation and thus give an inducement to lend on first mortgage of rural lands. The income tax on large incomes in excess of £S7OO is -Is fid in the £ and that a large income taxpayer who let on mortgage at say 0 per cent would after payment of income tax receive a net return of £4 13s. In pre-war times before we had experience of the moratorium and the subsequent inflation of land values it was not entirely the big investors who look up mortgages. Broad acres wore considered more or less as gilt-edged and many hundreds of small investors were glad to have their limited funds out on farm mortgages. Farmers in some districts are said to be finding difficulty in arranging mortgages and the trouble is attributed by some to inflated land values. No doubt this had had a good deal to do with the difficulties of the situation, hut this is not the sole cause. During the war and since, investors and small investors in particular have become acquainted with Stook Exchange securities. The issue of loans by the Government and local bodies, and the issue of additional shares by many of the hanks, and other strong joint stock companies have, with the help of sharebrokers, familiarised the small investors, and not a few have withdrawn from the lending on mortgage and have bought up gilt-edged stocks and shares. They find that as most if not all joint stock companies distribute dividends free of income tax, they as holders of such shares are free, and that there is no trouble with respect to interest on bonds or debentures or dividends on shares. On due date these are paid promptly, and in the case of dividend warrants they are posted to the holders of the shares. It is not so simple a matter with respect to a mortgage, as the mortgagor is entitled to a month’s grace and frequently has to he written to and reminded r.'f his obligations. Other speakers at the meeting were of opinion that as valuations, were now being made on a strictly conservative bus’s money is beginning to flow hack into rural investments. It is to he hoped that this is correct, but in any event rural investments must compare with other investments as to yield, safety and ease of collection. Preferential treatment in respect to taxation would be very wrong, but fair treatment would bo mere justice.

UNFAIR BUSINESS. At some time or the other every wholesaler and retailer has come up against unfair trading, and some traders seen. to have a strong leaning towards unfair trading and seem to dislike a square deal. There is a good deal of this unfair, if not dishonest trading going on in all countries, bun it is safe to say Hint the majority of traders are always anxious to trade fairly even when harassed by strong competition. The International Chamber o.' Commerce is actively interesting i'l“c!'T in this matter of unfair trade practices, and is obtaining opinions from various chambers of coinin'©:**. It wants to know for instance whether it should commit itself to the principle of submitting to the elimination of unfair practices in national ami into’ - - national business dealings. It proposes to sponsor the creation of an International Committee to collect examples of unfair practices which are of frequent occurrence in the principal trades of each country and in international business dealings. In Victoria an organisation known ns the “ Better Business Bureau,” realising that owing to the spread c-f business and the giowth of competition, the promotion and maintenance of confidence forms one of the most important problems of the commercial community, the organisation is proceeding along indefinite lines in an endeavour to cope with the increasing undesirable practices and unfair competition that is in evidence on every hand. In furtherance of the move to stimulate a keener sense ol business morality the State AttorneyGeneral is to he asked to have a law j passed making it a punishable offence for anyone to ‘ mislead the public in business transactions.

Yon can preserve eggs at less than a penny a dozen if you use Sharland s .Mon Brand Egg Preservative. Keeps 3ggs fresh.—-Advt.