THE MORATORIUM.

Manawatu Standard, Volume XLIV, Issue 1076, 24 July 1924, Page 5

THE MORATORIUM.

ACT TO CEASE TO OPERATE.

On the question of the moratorium, the Prime Minister said during the delivery of tho Financial Statement last night: “The effects of tho post-war boom have not entirely disappeared. A number of people who bought land at prices beyond its value and left a very large proportion of the purchase money on mortgage find, now that prices of most of the primary products have fallen somewhat, serious difficulties in paying their way and making ends meet, '1 ho problem of enabling such people to regain their financial stability is one not easy of solution, though in many deserving cases where the mortgagor is an industrious arid energetic man, mortgagees have met the difficulty by accepting a share of the responsibility and writing off part of the indebtedness. This is the proper thing to do. Unfortunately, there are sometimes faults on both sides, and it becomes impossible to make any arrangement to which both parties will agree. The Government has assisted und will assist struggling settlers wherever it is possible to do so, but it cannot encourage breaches of agreements lawfully entered into. There is some satisfaction, however, in knowing that these difficulties are gradually adjusting themselves and that on the whole production is being maintained. The Mortgages Extension Act will cease to operate on the 31st December next. Under this Act the mortgagee can apply to the Supreme Court for exemption from the restrictions on the enforcement of his rights, und the Court, having considered the effect of continuance on the security, the ability or otherwise to redeem, and the question of Hardship generally, is empowered to grant relief tuicV'r special circumstances. ' The legislation just introduced will, if passed, have the effect of putting the law the other way about, so that tlie mortgagor may go to the Supreme Court, and, where lie is able to prove to the satisfaction of the Judge in Chambers that actual hardship will otherwise ensue, the Court will be empowered to grant a limited extension. Oherwise the moratorium will bo lifted us from the Ist January, 1925.'’