MORTGAGEES AND BONDHOLDERS.

Press, Volume LXIX, Issue 20906, 13 July 1933, Page 8

MORTGAGEES AND BONDHOLDERS.

THE BURDEN OF DEBT. MR C. G. M'KELLAB'S EXPLANATION. The remarks made by Mr C. G. McKellar at the meeting of the Riccarton Borough Council on Monday evening and reported in Tuesday's issue of "The Press," under the heading, "Mortgagees and Bond* holders," have been somewhat misunderstood, according to a stater ment made by Mr McKellar to a reporter yesterday evening. "My remarks about the burden of debt," Mr McKellar said, "have been somewhat misunderstood. The point I wished to stress was that some form of inflation is imperative in order that all the sacrifices shall not be borne by the debtors alone. They have been the enterprising section of the community and helped the prosperous times. A limited controlled inflation (diluted currency), with lower interest rates, would put back equities and assist mortgagees to recover their Joans. The form of inflation is being settled in London at present. America has stated her case, and it will be interesting to see England's reply. Mortgagees have, of course, suffered and have, in the majority of cases, voluntarily met the situation fairly. Those who have received interest in full are in a better position owing to the greater purchasing power of the pound. My remarks should, therefore, not have the general application the report would suggest.'