Rural Misconceptions.

Rangitikei Advocate and Manawatu Argus, Volume XXXI, Issue 8777, 3 April 1907, Page 2

Rural Misconceptions.

Sir. —An article appears in the New Zealand Times of 27th ultimo, under the above heading. It deals or purports to deal with the right of renewal of mortgages after the Laud Bill becomes law, and it quotes Mr McNab’s amendment to clause 15 of the Bill, which roads as follows “ Provided always that where a mortgage of rural laud is dated prior to tho commencement of this Act, and tho mortgagee has become tho purchaser of the mortgaged laud or any part thereof at a sale made under tho direction of tho Registrar of the Supremo Court, the instrument of conveyance may be absolutely registered if having subscribed thereto or endorsed thereon a statutory declaration by such purchaser that, to tho host of his information, knowledge and belief, tho mortgage was executed prior to the commencement of this Act, ’ ’ and adds tho comment, * ‘ This specific exclusion of existing mortgages from the operations of the Act enabling the mortgagee, as it does; to renew just as at present, should allay our correspondent’s fears.” There a flue strain of sophistry or ‘ 1 misconception ” about this. The above clause refers to foreclosure, uot renewal of mortgages. “Where tho mortgagee has become tho purchaser ” of the laud under a mortgage granted before the' Act comes into force, his title may bo absolutely registered as at present, but the mortgage cannot be renewed after the passing of the Act without the mortgagee iu event of foreclosure coming under the “ £15,000 limit.’,’ It is hero that borrowers will suffer. Under the new Land Bill the money-lenders will be so hampered iu regard to their right of foreclosure iu case of default, that the rates of interest must be raised, and the margin of security increased. The comparatively well-to-do borrower, who has a first-class security to submit, will not feel it so much perhaps, but the struggling settler, tiie man with a bush farm, with most of the land to clear ou borrowed money, he is the man who will find a great difficulty in getting tho money that he requires at rates anything like those prevailing now. Tiie New Zealand Times alleges that the Farmers’ Union was “ quick to sow a crop of misrepresentation.” AVho sowed the above cunning misrepresentation? jThe Farmers’ Union neither desires nor requires to mislead the people. The same apparently cannot bo said of the other side.— I am, etc., EDWARD NEAVMAN.