THE MORATORIUM

Press, Volume LV, Issue 16584, 25 July 1919, Page 6

THE MORATORIUM

EXTENSION SCHEME UNDER CONSIDERATION, (press association* telegram.} WELLINGTON, July 24. Regarding the moratorium, the At-torney-General stated to-day that it is not the intention to allow the Act to expire, and immediately after Parliament meets tho Government will propose tho extension of tho Act, for a further period, with certain modifications, to prevent the oxerciso by mortgagees of the immodinto calling in of capital invested on mortgage throughout New Zealand. The Act, unless renewed by Parliament, would wholly expire on August 31st. ISrECXAL TO "THE PRESS.") WELLINGTON, July 24. The Government lias under consideration the question of tho expiry of the Mortgages Extension Act, and tho action to be taken to prevent, if po sible, a huge volume of mortgagos falling duo at the same time. A statement has been made on the matter by Sir Francis Bell, which gives a meanwhile assuranco that the final date is not to be August 31st. l'or the present the Government may deal with the question simply by postponing tho time of expinr of tho Act, but other things; are being discussed. It is understood that tho Australian scheme, which provides for tho expiration of mortgages at different timcs ; according to some plan, has been considered, but that the Govermnont has not jret decided to adopt it; it may not, m fact, adopt it at ail. It has been pointed out in newspaper correspondence and otherwise that tho problem will not be solved merely by the oxtension of tho Act, for the condition will still obtain under such an arrangement that the market will at some time or other, when the Act does ceaso to operate, as it must somo day, be flooded with borrowors in need of money. An extension would have the effect of giving moro notice to mortgagors, and they might get their affairs into order in the meantime, but still it is claimed that such a scheme would create a great rush for money, with tho result that interest rates would be raised much abovo tho present market. Most of tho suggestions being made are for on arrangement which would terminato mortgages in such a way as to spread the demand over a long period, but the plan to achieve this may prove difficult of discovery.