A New Policy and Sir J. Vogel

To the Editor.

Sir,—Your issue of Thursday, the 12th. inst., contained a letter signed "Argus," I desire to correct a slight error in the reprint of the suggestion for a "Mortgaged Estates' Bill," recently made public. The 1½ per cent mentioned as a probable saving to the country should read 1¼ per cent, the difference between 7 per cent now paid as annual interest on mortgage and the suggested 5¾ per cent to be collected by the Government. You have no doubt noticed that the matter, in independent forms, was brought before the notice of Sir Julius Vogel by two questioners. The candidate's replies showed that, although he was not in favour of State interference in the matter, the subject was one new enough to require cautious handling, and large enough to command respectful treatment. Its advocates could hardly expect more, especially at the close of a long oration, the backbone of which was somewhat antagonistic to all who desire to curtail the powers of outside capitalists. Those, however, who simply wish to "make the balance true" as regards capital and labour, cannot be ranked with Socialists who are under mining Colonial credit by a "bursting up" policy.

It is to be noticed that, by pleading that he had already answered a part of the question, Sir Julius avoided any direct replies to a series of queries concerning the position of the farmer in relation to the capitalist. For instance, he did not say if in his opinion, any of the existing depression among agriculturists could be accounted for by the high interest which they had to pay on mortgages; neither page 17 did he state that he would favour any matured plan having for its object the lessening of the burdens of the farmer. But, with his wonderful quickness of thought, the ex-Premier and Agent-General caught, and concisely explained the bearing and significance of the following interrogation:—

If a farmer could borrow money on mortgage at 5 per cent, would not an annual payment of £7 1s 11d enable him to quite free his farm in twenty-five years?

Sir Julius Vogel considered that the subject of Terminal Annuities (as implied by the above question) should engage the attention of farmers, more especially if the interest they were at present paying could be used to discharge the debt incurred while performing its present office.

It is a matter for regret that Mr Wason, before whose notice the subject of mortgage interest was first brought, has not given public expression to his opinion of what he truly termed a "large question," as it is one of considerable interest to the rural districts.