THE MORATORIUM.

New Zealand Herald, Volume LVIII, Issue 17845, 28 July 1921, Page 8

THE MORATORIUM.

EXTENSION ADVOCATED.

RESOLUTION BY FARMERS

COMPANIES' INCOME TAX.

[BY TELEGRAPH—PRESS ASSOCIATION.]

WELLINGTON. Wednesday. At the annua] conference of the New Zealand Farmers' a remit from Hawke's Bay read:—"That owing to the main primary products of the Dominion being at present practically worthless, the Government be asked to extend the mora- i torium for such further period as it may consider necessary after December 31, I 1921, more especially with respect to fixed mortgages." j Mr. Stace (Blenheim) sewnAed, and • said he thought there should be some pro- ' tection for people who had lent money on ' fixed mortgage, so that tbey should earn : the current rate of interest. | Mr. Bates (North' Canterbury) moved I an amendment—"That this conference approves of some measure of Government I supervision over the audii.of corporations j and financial institutions accepting . de- j posits from the public." He said he favoared an extension of the moratorium until exports again showed New Zealand j to be in a prosperous condition. This was not accepted as an amend- I ment, but as a Separate resolution. According to Mr. F. Colbeck (Auckland), many farmers were sheltering behind the moratorium. Mr. Mulholland (North' Canterbury) moved as an amendment that the following \ words be added to the motion: "But that the onus of proving that the rate of interest is too high be on the mortgagor." j This amendment was heavily defeated, and the motion was carried. Mr. Bates' motion was then defeated i Mr. Duxfield (Horotin) moved:—"That the present income tax in respect to com- ; panies is unjust in incidence, especially I in relation to small shareholders." The : reason for the motion. h*e said, was that j under existing conditions no investor j would put his money into a company, and ! stagnation would result. The tax was j unfair and was going to throttle industrv. | Mr. Colbeck seconded, but contended i that neither the large nor the small shareholder paid the tax. The purchasing j public paid it. However, he was onposed to _ the tax. Onp reason was that it was going to make the interest on mortgages excessively high. The motion was carried.