Not in Favour of Moratorium

Manawatu Times, Volume LV, Issue 7409, 17 December 1930, Page 5

Not in Favour of Moratorium

OTHER WAYS OF HELPING FARMERS ACTING-PREMIER ON MORTGAGE PROBLEMS Per Press Association. MASTERTON, Last Night. Reference to the proposal to institute a moratorium was made to-day by the acting-Primo Minister, Hon. E. A. Ransom, when speaking at the opening of the Ruamahanga river bridge at To Ore Ore. Mr. Ransom said it was the duty of the Government to assist particularly tho primary producers in the development and operation of their industry. They were told by some, pdople that a moratorium should be instituted in regard to forming loans. This was a proposal that needed looking into very carefully. As a farmer, Mr. Ransom said the moratorium would bo no good to farmers: Since the institution of tho last moratorium it had been very difficult indeed to get people to invest money in rural securities. The aim should be to attract money into these securities instead of discouraging investment in them. He would rather sec some attraction offered to invest in

rural securities than put a penalty on this type of investment. Nearly one-half of the mortgages of the Dominion were held by public departments. Ho would give an assurance that as far as these departments were concerned every endeavour would be made to keep all those on the land that were now in occupation, and that no hardship whatever would be inflicted on those who were mortgaged to the State.

In regard to the difficulties the country was now passing through, he was convinced that private investors, realising the seriousness of the position, would not press unduly on borrowers for a settlement. Mr. Ransom said he had been considering whether something might not bo done to ensure reasonable consideration to mortgagors, and whether they might not set up some sort of a tribunal before which mortgagee and mortgagor could be brought together, if necessary, to discuss the position and ascertain whether fair treatment was being given or not.