Reducing the Price of Money.

He explained that the general policy of the legislation was to reduce the price of money, and that it was hoped that the Mortgage Corporation would be of great assistance in refinancing the farmer after his liabilities had been "adjusted" under the Rural Mortgagors' Final Adjustment Act.

The objectives of the legislation were to provide an alternative to private finance, to promote economy in mortgage finance, to provide adequate reserves against losses, and to transfer the existing Crown securities to a non-political body.

In short the private investor would take up bonds in the Corporation and thus have his investment secured upon an innumerable number of properties when the Corporation in turn made its investments from the accumulated funds contributed by its bondholders.

Quoting glibly from the two pamphlets already referred to, he rapidly expounded upon the mysteries of dividends, directors, share capital, reserves, and the fact that the bond issues would be secured by a floating charge upon the whole undertaking of the Corporation, and would never exceed fifteen times the share capital plus reserves. Our reporter was forcibly reminded of the debenture issues of our worthy contemporary, Mr. J. S. MacArthur. The Corporation would deal in first mortgage securities only, but in certain cases might take a collateral charge over chattels. Valuations would be made primarily on the basis of the earning capacity of the land.