MORATORIUM PLAN.

Auckland Star, Volume LXI, Issue 287, 4 December 1930, Page 8

MORATORIUM PLAN.

OPINIONS IN AUCKLAND. "WORSE THAN THE DISEASE." FINANCIAL AUTHORITY'S VIEW, "Our experience of the last moratorium was very disappointing—we found the cure was worse than the disease," said, a prominent Auckland financial authority when discussing the suggestion that the Government should declare a moratorium on mortgages.

He considered the biggest risk with a moratorium related to farm properties. With butter at 9d a lb and wool at 4id, it was impossible for the farmer to pay his way, and he believed the bulk of the mortgagees would not on due date press the mortgagor if the latter were a "trier" and had done his best to meet interest paymenss. In the course of the institution of which he was the head, the trier was always assisted in time of difficulty; it was the non-trier who deserved no consideration. •"I feel • sure the • moratorium, if re-enacted, would do more harm than gocd," he added. "Financial institutions are not over-fond of lending money on farm properties now, but if the moratorium is reintroduced they will not lend on those securities at all. If a mortgagee is, receiving liis interest, why he want to change? If a mortgagor makes default, a moratorium won't affect it. The big majority of the mortgagors to-day who can pay do so. There are exceptions, but these are few: I don't see. what good will be gained by reviving the Act. I don't see what good it did before, and I cannot see what good it can do now."