MORTGAGES EXTENSION ACT

Otago Daily Times, Issue 17687, 26 July 1919, Page 10

MORTGAGES EXTENSION ACT

QUESTION OF EXPIRY. PROBLEMS FOR CONSIDERATION. (FROM OTTB OWN Correspondent ) \-- WELLINGTON, Jnly 25. , Tho Government ha 3 under consideration the question of the expiry of the Mortgages Extension Act, and the action to bo taken to prevent, if possible, a hutro volume of mortgages filing duo at tho same time. ; A statement has b<wn made on the matter by Sir Francis Bell, which gives a meantime assuranco that tliA final date is not to bo August 51. For the present tho Government may deal' with the question simply by postponing tho timo of expiry of the Act. but other things are beini? discussed. It is understood that the Australia,n echcme, which provides for tho expiration of mortgagee at different times according to some plan, ha® been con*adered but thai tho Government has not yet decked to adopt it, and may not a-ciopt it at. aU. It has been pointed out that the problem will not be solved nwrelv bv tho extension of the Act, for the condition will Stall obtain under Buch an arrangement that the market will, at some timo or other Act ccacos to operate, bo flooded ■with borrowers in need of <v n extension would hare the effect of givfnc inorc notice to mortgagors, and *hey might ©3t their affairs into order in the meantime, but stall it is claimed that such a schemo would oreat© a great rush for money, with the result that .'nteresfc o j be raised much ai>ovo tho present market. Most, of tho suggestions made are for an arrangement which would termili&to mortgages in such a way as to spread the demand over a long period,' but tbs plan to achieve this may prove dim, colt of discOTory,