THE MORATORIUM.

Hawera & Normanby Star, Volume XLII, Issue XLII, 4 May 1922, Page 8

THE MORATORIUM.

ITS "MISCHIEVOUS EFFECTS."

THE CLOUDS ROLLING BY

In moving the adoption of the annual report of the New Zealand Investment. Mortgage, and Deposit Company, Ltd., , the chairman (Mr. W. G. Foster) made I some dntergsting remarks taibcKut- the I ■ moratorium. ] i "Owing to the mischievous effect of the moratorium of 1919," he said, "and , the inclusion of deposits in its embargo, jthis company's business was very seriously hampered. In view., however, of I such indications, your directors were not unprepared for the squall and by maintaining a substantial credit balance in the bank account were enabled to meet all call and short-dated deP? sjts, as well as any eases where the withholding of payment would have entailed hardship. Of course the withholding of a large sum from investment on mortgage for the above purpose has been felt in the profits for the year, but, considering the object, which has been successfully achieved, of meeting such engagements, notwithstanding the liberty to withhold conferred by the Act, and the consolidation of the company's reputation, as well as the cementing of its business connections, ( the decline in profits will not prove a useless sacrifice. ' 'At this stage I wish to express your board s warm appreciation of the sympathetic cordiality of its depositors, who, m many cases, must have suffered disappointment at the enforced hold-up of their funds, but who, realising that it was from no fault of the company, .took their gruel gracefully and with assurances of goodwill and continuance of business when the clouds roll by I think the 'rolling by has commenced. I 'A Parliamentary Commission was set up last session to consider and report upon a Bill for the further extension of the moratorium, and printed copies of the Bill were early in the ' hands of the companies interested The less said about this Bill the better; "but it is not desirable to pass it over in silence, and I here wish to express at any rate my personal opinion that it met its merited fate in its complete rejection by f'-e commission, which, however, framed another more favourable to the re-establishment of financial conditions, but which still leaves room and necessity for further tinkering at next session, that is, if it is to be continued to its legal termination. "This Act, in the opinion of your board, disclosed no advantages for this company, and it was therefore decided to withdraw from the supposed shelter of its protection and to resume normal conditions. In so doing the board has been assured of the best support of its depositors, snd feel confident of the fn.iiro ')