THE MORATORIUM.

Ashburton Guardian, Volume XLV, Issue 10168, 25 July 1924, Page 3

THE MORATORIUM.

POSITION WHEN LIFTED. I MR MASSEY’S STATEMENT. (Special to the “Guardian.”) WELLINGTON, July 23.. Reference to the lifting of the moratorium was made by the Minister for Finance to the House of Representa- ■ tives in the course of his financial statement to-night.. The effects of the post-war boom have not entirely disappeared, stated the Minister. A number of people who bought land at prices beyond i.ts value and left a very large proportion of the purchase-money on mortgage find, now that prices of most of the primary products have fallen somewhat, serious difficulties in paying their way and making ends meet.. The' problem of enabling such people to regain their financial stability is one not easy of solution, though in many deserving cases where the mortgagor is an industrious and energetic man, mortgagees have met tli© difficulty by accepting a share of the responsibility and writing off part, of the indebtedness. This is the proper thing to do. Unfortunately, there are sometimes faults on both sides, and it becomes impossible to make any arrangements to which both parties will agree. The Government has assisted and will assist struggling settlers wherever it is possible to do so, hut it cannot encourage breaches of agreements lawfully entered into. There is some satisfaction, however, in knowing that these difficulties are gradually adjusting themselves and that on the whole production is being well maintained.

The Mortgages Extension Act will cease to operate on December 31 next. Under this Act the mortgagee can apply to the Supreme Court for exemption from the restrictions on the enforcement of his rights, and the Court, having considered the effect of continuance on the security, the ability or otherwise to redeem, and the question of hardship generally, is empowered to grant relief under special circumstances. The legislation just introduced will, if passed, have the effect of putting the law the other way about, so that, the mortgagor may go” to the Supreme Court, and, where he is able to prove to the satisfaction of the Judge in chambers that actual hardship" will otherwise ensue, the Court will be empowered to grant a limited extension. Otherwise the moratorium will he lifted as from January 1, 1925. 'HI