RATES OF INTEREST.

Auckland Star, Volume LXII, Issue 70, 24 March 1931, Page 6

RATES OF INTEREST.

In the columns of vour paper of the l'Jtu inst., under the heading "Sanctity of Contract," Mr. W. J. Poison, M.P., remarks" on this phase of economic life and public ethics. He says "so long as the mortgagee does not suffer hardship," and he speaks of "assailing a vital principle of British law," etc. But where dees saeredness end and outrage begin? "Ninety per cent," he says, "could be settled by mutual consent." But* what of the other ten per cent? Are they to have a free, exploiting hand? Certainly not. Thie is where the State has a right to and must step i". In the present usurious condition of the money market it is nothing more nor loss than a public scai.dal that "man's necessity is the usurer's opportunity" to charge forty, fifty or even one hundred per cent for helping a lame brother over the stile of adversity. Where is the "sanctity" of contract in such cases? I know of many quitj recent cases of mortgagees meeting the mortgagors and "crying off" twenty-five per cent of the mortgage amount and some interest as well. All honour to such men and women. But the "shark" would cry eff twenty-five per cent of capital and put on fifty per cent of interest. This might work o*lll at £400 at six per cent originally, but now £300 at eight per cent. Here is the place for State interference. In order, then, to equalise matters the State must step in and bring down legislation to adjust the burden of all. Prime Minister Forbes will be doing a great work towards removing poverty an( l unemployment if he brings in a bill to restrict interest charges to reasonable rates. I would suggest that readers plan out the rates they think fair. How about CA per cent maximum up to £1000; G per cent up to £2000; 5i per cent for £3000, and so on, with nothing in excess of ten per cent on any loan (ten per cent per annum, mind) ? Extortion under the shadow of the law" is no different from any other larceny, and is contrary to Magna Charta, which .said: "No person must be dispossessed, of bis lighte.'? A.MJS.