THE MORATORIUM

Evening Post, Volume CVIII, Issue 80, 1 October 1924, Page 4

THE MORATORIUM

EXTENSION OF MORTGAGES BILL PASSED BY LEGISLATIVE COUNCIL

The Mortgages Final Extension Bill, as amended by the Statutes Revision Committee of the Legislative Council, was discussed in the Legislative Council yesterday afternoon.

The Leader of the Council (Sir Francis Bell) said he wished to make it perfectly clear that the Government had expressly stated -that , it would leave any alteration in the d«ites involved in the Bill to the discretion of the Statutes Revision Committee. The Government did not press its own views in the matter. The decision of the Committee was in that respect perfectly frank and uninfluenced. The title of the Bill was hardly consistent with the alteration that had been made in the form of the measure. The title expressed the siiicere desire and intention of the Government, that the measure would be the very last mortgage Bill to be introduced. "I personally consider the Committee has been very wise.:" said Sir Francis, "in the selection of the dates it has fixed, and I shall vote in the Council in support 1 of the alterations which have been made. If the consequence is that we have to debate the matter in conference with, another place, that has happened before, and there is no reason why it should not happen again." (Hear, hear.) ■

INCALCULABLE MISCHIEF.

' The Hon. Sir E. Mitchekon said, he had regretted very much the alterations made in the Bill by the House of Representatives. It was only prolonging the agony, aud putting ofi the evil day, to extend the moratorium past 31st December, 1924. There was no assurance that this would be the last measure of its kind, and that the Government" would not be asked to further extend the moratorium. The various extensions of the moratorium- had done an incalculablo amount of mischief, and lands, particularly in the North Island, had gone back considerably. The extensions' had resulted in the closing, of the avenues from which money had freely flowed previously, . and now, instead of lending money on mortgages,' people and institutions were investing it in debentures and local body loans. Some of the banks of Australia, which previously had cir-; culated large sums of money, had closed those avenues, and were now investing in debentures and lending to local bodies. Sir Edwin referred to the Public Debt and the1 manner in which it had been increased in recent years, and said that the one redeeming' feature about it was the fact that more than half of ife'was held within the Dominion. He did not believe one mortgagee in the country who had a margin of equity would call up a mortgage. It would be in the interests of mortgagees to allow the occupier time to regain his position. The Hon. H. L. Michel said he hoped the Bill would pass in its present form without vital alteration. Many men and women had their life's savings lent our. on mortgage, and they were suffering a real hardship at the present time. Ho did not believe the lifting of the moratorium would have the chaotic effect .that was being predictedf.-yThe number Rpf mortgages {affected,! *.ne thought, would be found to be comparatively few in number. The passing of the' Bill would have a, stabilising effect up'oii the finances of the country. It was a serious matter that the moratorium had remained so long, and there, should be no further extension.

THE PUBLIC DEBT.

The Hon. T. W. Hislop said that Si» Edwin Mitchelson had drawn a pitiful picture in regard to the financial- conditions of the country. We ought to lie accustomed by this time £o a large National Debt. While it had increased from £90,000,000 a few years ago .to over £240,000,000 at the present time, the capacity of the country to pay' the debt had increased, for our trade had grown very considerably. Mr. Hislop said he had no doubt that in a short time those who were steadfastly endeavouring to lower the debt on their properties would be able, by benevolent interpretation of the rights of the mortgagee, to reduce their mortgages and to secure money at the usual rate of in-

terest.

Sir William Hall-Jones said he agreed that the sooner the war restrictions were removed the better it would be for the country, and he believed the Council would be unanimous in removing one of those restrictions in the form of the moratorium. He did not believe any^ one would have difficulty in meeting his obligations, provided he had a reasonI able security to ofier. He did not apprehend any serious trouble at the end of this year arising out of the operation of the proposals in the Bill. The Hon. C. H. Izard said he did not look upon the lifting of the moratorium in the black way that Sir Edwin Mitchelson did. He beli*'ed the Bill would enable those who wanted assistance to be treated fairly and with justice. The Hon. W. W. Snodgrass said.he did not anticipate there would be any undue hardship under the Bill. ' Sir Frederick Lang and the Hon. G. ,T. Garland further supported- the measure, which was thereupon put through its final stages and passed with only minor amendments in addition to those effected by the Statutes Eevision Committee..