The Dominion. WEDNESDAY, NOVEMBER 1, 1933. MORTGAGORS’ RELIEF

Dominion, Volume 27, Issue 32, 1 November 1933, Page 8

The Dominion. WEDNESDAY, NOVEMBER 1, 1933. MORTGAGORS’ RELIEF

con- * “ dß X e th“ Act °pX £ M of Reckoning be postponed? The idea is, and it is applied to other problems besides mortgages, that if the mortgagor can be tidedl over the present emergency, he will be able to resume his full obligations under normal conditions. Whether he can make up the leeway of the past three years begins to be doubtful, but the assumption is sts made in any case most people shrink from the alternative, which is to let things take their course. . The effect would be a general liquidation, an almost universal uprooting.. The creditor might take possession of his security but what would it be worth? On the other hand, if the present debt structure were allowed to collapse, the accompaniment might be political and social revolution. The creditor would be involved in the debtor’s ruin. , , , . , , Hence a large part of the world sees the only way of escape from the economic maze in a rise of the general price level. That solution is the key item of policy in the programme of the American Colossus. Much speculation has been loosed on President Roosevelt’s objective in buying gold. But, to quote a recent definition, he seeks to bring about “such a rise of primary prices as will make tolerable the burden of debts, leaving a good margin of profit besides; and. to the industrial and business community an increase of turnover involving the reduction of unemployment. ...” , • < . Great Britain has accepted the sam? objective but is not inclined to use a forcing policy in order to realise it. She is ready to create, and has done so, the conditions conducive to-recovery but is unwilling to take the positive steps that the United States is taking. Some movement there has 'been, and it promises to continue—slow but steady and, maybe, sure. New Zealand, largely dependent on British policy, must wait on developments, and meanwhile cannot risk removing the legislative props. a •