"LAST WEAPON."

Auckland Star, Volume LXI, Issue 286, 3 December 1930, Page 9

"LAST WEAPON."

USE OF MORATORIUM. NEW ZEALAND FINANCES. STATEMENT BY MINISTER. ACCOMMODATION BY BAN&3. An important indication of the steps Cabinet is taking to safeguard the financial position of New Zealand was given "by the Hon. A. J. Stallworthy, Minister of Health, in an interview with a "Star" representative this morning. Asked whether the Government had considered the question of the re-intro-duction of the moratorium, as suggested by a recent meeting of farmers, the Minister stated that the Government was closely watching the whole economic position, not only as affecting public finances, but also the wider structure of private finance, upon which, the public treasury was built. The Government appreciated that in' pr.oper consideration and conservation of the latter was the surest guarantee of the' former. The whole of the resources of the Government in executive and advisory officers, and in representative capacities on financial institutions, were being used to safeguard the position, as far as this was possible. The terrific fall in export prices had produced a crisis which had to be faced. The moratorium was one of the last, if not the very last, weapons to be used. Its repercussions were sometimes more disastrous tlian v the immediate evils sought to be remedied. It was not likely to be lightly imposed. The Government had reason to feel assured that it would be the policy of the banks, as far as possible, to assist both primary and secondary industries over a difficult period. The inexorable demands of. stressful times would make it hard for the man with one big farm or more, plus a city residence, plus a seasjde residence, plus sundry speculations, two motor cars, and a bank overdraft. The bona fide farmer or business man, with a reasonable prospect ahead of him, and a good reputation behind him, was not in the same category, and had a fanclaim upon the financial institutions W hich was likely to be met. The Government was alive to the whole situation and frequent conferences were held as indicated above.