MONEYS ON DEPOSIT

Nelson Evening Mail, Volume LIV, 12 July 1921, Page 1

MONEYS ON DEPOSIT

INTENTION TO EXTBHDV ! MORATORIUM ; y f ** *, ‘ „ i, ■ ■■ --ry The ofTicial announi&erapntybf, Jegislation next session kjfco may cause-actual injury,. sayjs; the f ' Herald. Last March the was advised-that a serious* position would arise unless it protected "local authorities and companies./froni* .the, ( then insistent demaud for ' * ment of loans at call, or ’khoH dates. ’ - Legislation was enacted, fltf a-jingle „ sitting by which the duo dates' of'all , sucji deposits were automatically ex? tended to May 31, with'.a further ox- * tension not later than -December J upon notice being given bor** - k rower, and a Higher rater, i*. paid, the. minimum increase Being' 1, v I>er cent. It is not known exactly sliow this provision has operated. Som®. -'; borrowers imraediatoly ( announced 1 that they would not take "adyautagei‘ V ( of the moratorium; the.-majority -oftho others have no doubt"' already, y- 1 made, or arc making*, arrangements to repay the deposits held .by. jthejn ’ 1 j on March 21. That is only ordinal?. m'Mencc. It is indeed dn essential.C;,. feature of such emergency legislation' - that its Operation should be 1 teVminafc*. i V; ed immediately the urgent necessity ', a for it has passed, and it,, was under- O. stood at the time, particularly, from the Prime Minister’s - speech, that;-.' ; there would' be no estensiop/beyond 1 December 31 unless the circumstances I were gravely exceptional! '.'Now the ' orderly process toward normal . ijition is disturbed by the Atomise jof a renewal of the moratorium. -Sly. i, Francis Bell proposes a release” of the 1 deposits ’concerned,'; though it is not clear how Jio cam de- - vis© a sliding' scale that ‘ * was at call. This is' Wholly inconsistent with his persistent { iefusal v to' adopt a sliding seal© foil tho release ‘ of mortgages from . thfc war-time'-,/ moratorium. There the >system was' ’ obviously easily and 'the most poetical way of escape from an ( awkward position. No “such compli-, - ‘ cations have arisen 1 'in connection ■ ->' with the deposits-moratoriu'm, and itis doubtful whether' either depositories or lenders will welcome the . - proposal to prevent, tho extinction of.' , the embargo on the due dates, i