more harm than good

Gisborne Times, Volume LXXI, Issue 11382, 6 December 1930, Page 5

more harm than good

•> RE-ENACTMENT OF THE MORATORII’M,

AUCKLAND FINANCIER S VIEW

“TRIERS” ASSISTED IN CASE OF " ■ DIFFICULTY.

(Special To The Times;. AUCKLAND, Dec. 4

“Our experience of the. last {noratorinm was very disappointing. We found the curb'was worse than the disease,” said a prominent Auckland financial authority, when discussing the suggestion that the Government should declare a: moratorium on mortgages. He considered the biggest risk- with the moratorium related to farm properties.' With butter at -Dd a lb and wool at 4ld, it- was impossible for the farmer to pay his way, and 'he believed the bulk of the 'mortgagees- would- not on due datb'-presS the mortgagor if the latter were a “trier” and, had done his best to meet the interest payments. The institintion of which he was' head always assisted the “trier” in eases of difficulty. It was the “non-trier” who deserved no consideration. “I feel, sure the moratorium if reenacted would do more harm than good,” lie added. “Financial institutions are not oyer fond of lending money on far in properties now, but if the moratorium is reintroduced they will not lend on those securities at all. If the mortgagee is receiving liis interest, why does he want to change?' If the mortgagor makes default, the moratorium won’t affect it. The majority of mortgagors today yvho can pay, do so- There are exceptions, but these *jre 'few. I don’t see what good will be gained by reviving the Act. I don’t see what good it did before, and I cannot see what good it can do now.”