THE MORATORIUM.

Press, Volume LX, Issue 18128, 18 July 1924, Page 8

THE MORATORIUM.

local opinions of the BILL. "Tlie Government; is following the right principle," said a gentleman connected with a building society to a "Press" reporter yesterday concerning the Mortgages Final Extension Bill, particulars of which were published yesterday, "in throwing the obligation for applying for an extension a mortgage on to the mortgagor, but it seems rather a cumbersome process to compel him to K o to the Supreme Court for the purpose." "Mr Massey never intended tue moratorium to be extended for a further period," said another gentleman in a similar capacity, "and therefore it appears that there must have been some call for an extension to mafce him change his mind about the matter. The extension might, for instance, bo required in the case of some settlers who have not yet turned the corner. He went on to state that so far as his company was concerned it had experienced no troublo at all, and as soon as a mortgage ran out the comoanv automatically charged bi per cent, on it, this rate of interest going on till December, when under the oia Moratorium Act all protection would have ceased. He thought it waa quite a fair thing to throw all the responsibility in connexion with extending mortgages on to the shoulders of the mortgagor. The provisions of the Bill would not hurt anyone very much, and would probably be appreciated by a number of farmers. It, hoover the moratorium were dr°pped it was his opinion that nobody would be treated any the worse. Personally he thought it about time that all wartime legislation was abolished and that all financial business was allowed to cet back to normal; the moratorium had never been popular with business m The greatest drawbnek ho could see about the provisions of the Bill was that relating to the question of going to the Supreme Court, which would, he considered, be an expensive matter. He was of the opinion that the cost in this connexion should be reduced, 60 as «to give the mortgagor a fairer chance than he had at present. It seemed to him that there should be some restrictions made with regard to the costs of such litigation as the potion at the present time was playing into the hands of the lawyers. "There is any amount of money about just now for deposits," he said in conclusion. "To my mind it is a pity any further extension should bo made to the moratorium," said the manager of a local bank. "The great trouble about it has D©en that it has frightened investors. People won't lend money on mortgages when they can get better investments outside. When they lend money on mortgages at jpresdnt, they not know when they can get their principal back, and for this reason mortgage investments are going out or Favour.

"The Bill is satisfactory, however, in that it sets it down that it ie the mortgagor who must now take action in the matter of an extension, whereas previously it was the mortgagee who had to take steps to call the mortgage in. For this reason, it is fairer than previously, and f it will protect both the mortgagee and mortgagor."

He considered that the moratorium should have been lifted six months after it was put on. Mr Maesey, hd said, had promised that no further, extensions of the moratorium would be made and he (the bank manager) wondered when finality was to be readied in the matter. If it were allowed to run out on December 81st of this year, he did not think any great hantsßip would be inured on anybody, because the,, great, ifjprity. of mortgages had been arranger long, ago.' "So many inortgages, hav» already been re-arranged," said the manager of a stock and station agency firm, "that Ido not think there will be many applications mad& to the Court for extensions ; that is so far* aa the South Island is concerned. In the North Island, I believe, the position is very different and it is likely that the judges will have to deal with one or two pretty involved cases."

The Bill would, he said, provide for any contingency which might arise in connexion with the lifting of the morar torium. It was only reasonable to expect that there would be a certain number of cases of hardship, but at the same time, taking a broad perspective of the whole position, these would be counter-balanced by the benefits : which would accrue, The Act waa quite a fair one, and - there were very few eases indeed where the mortgagees had acted in an ungenerous manner, but in the case of unscrupulous mortgagees the Bill would be most beneficial to the mortgagors.