THE MORATORIUM.

Hokitika Guardian, 11 August 1921, Page 3

THE MORATORIUM.

(M ercanti le G azette ). Parliament will assemble some time next month, and in clue course we may expect to see some legislation proposed j dealing with the mortgage and call dej posit problems. Front announcement!made by responsible mon, it is {tpjntfent j that the Government will give some j consideration to mortgages and depositors. It must not bo forgotten that the mortgagees have been compelled to continue their loans at the pre-war rate of interest, atul whatever may have been their personal needs or desires, they have not been able to claim the capital. Forced loans have leal to considerable trouble in days past when loans were exacted by penurious kings. Perhaps little fault could lie found with the legislation during the war, hut the war is over and everyone is anxious to get back to normal. Mortgagees should no longer lie compelled to continue their loans, or if they are it should be at 7 per cent at the least, which is about the current net rate from mortgage debentures. With respect to call deposits the embargo should not extend beyond December 31. The receivers ol deposits have had ample time to make provision for repayment, and those who have failed to do so deserve to suffer. The depositors must have felt the need of the money, and the fact that they placed the funds at call is an indication that they contemplated using the money for some reproductive purpose. The lifting of the embargo will cause a disturbance, but it is better to face that than to have the Government compelling people to lend. It is very much to lie desired that the Government will cut itself from restricting or controlling finance and trade. The Government is not competent to do so, and that does not come within the function of the Government. There is a call tor .stringent economy on the part e* the Government, and the Government had better give heed to the matter. The country cannot stand any additional taxation, and yet further taxation will become imperative unless there is drastic eeononiv in the public service.