BRITISH CONVERSION LOAN

Hawke's Bay Tribune, Volume XXII, Issue 268, 27 October 1932, Page 7

BRITISH CONVERSION LOAN

INSURANCE CHAIRMAN’S COMMENT. By Telegraph—Press Association. Auckland, October 27. Speaking at the annual meeting of the South British Insurance Company, the acting-chairman, Mr W. R. Wilson, commented on the recent conversion of British 5 per cent. War Loan and the rubsequent rise in the quotation of other stocks. He said that any idea that this change for the better in borrowing power might be due to improved economic conditions was discouraged by the lack of evidence of -ny material improvement in the prices of raw materials and produce generally. On the contrary, the changed position seemed chiefly attributable to the accumulation of capital for which, owing to depressed trade, there wa s little outlet and which was seeking safe investments even at progressively lower rates of interest. MORTGAGE LEGISLATION. Criticism of the mortgage legislation was made by Mr Wilson, who said it had not only stifled the spirit which had been bringing about adjustments of mortgages, but had led to demoralising disrespect for contactual obligations. It was scarcely exaggerated when a leading legal authority stated recently that a generation was growing up which understood a mortgage to be a document signed by a mortgagor containing an implied covenant by the mortgagee agreeing to a moratorium.