FINANCIAL OUTLOOK.

Otago Daily Times, Issue 19373, 8 January 1925, Page 9

FINANCIAL OUTLOOK.

PAST YEAR; EEVIKWm BRIGHT PROSPECTS FOR 1925. SIR HAROLD BEAUCHAMP’S ADVICE. (Pee United Press Association.) WELLINGTON, January 7. Sir Harold Beauchamp, interviewed with regard to the financial position during tho year just closed and tie outlook for tha current year, said that a distinct improvement had taken place in New Zealand and Australia. No doubt a large amount of cleaning up was necessary especially amongst the farmers and others who had suffered so severely from the slump in 1920-21. Many of these farmers wore faced with big debit balances, and during tha past 18 months or two years they had been busily engaged in reducing their indebtedness and putting their financial affairs on. a more satisfactory footing. ‘ Whilst this cleaning up process was going on it naturally contracted the spending power of these people, with the result that many traders complained of the falling off ia trade, especially that coming from their farmer friends. This was particularly noticeable in the Auckland district and' other parts of the North Island more than, in the south. Now, with the phenomenally high prices ruling for wool and other produce, the farmers were able to spend much more freely, with the result that there was a distinctly more cheerful tone amongst all classes of traders in every part of the dominion.' Profiting by past experience, many farmers recognised the necessity for paying off or substantially reducing their mortgages instead of employing their surplus rands for other purposes. If this policy wera continued it was only a question of a short time when the farmers of this country would 'be in an almost enviable' position. True, there were still a number. sheltering under the moratorium, which prevented the mortgagees from realising oa their securities. “I am one of those who regret that the moratorium was not lifted at the close of the armistice,” said Sir Harold Beauchamp, “instead of 'being prolonged and thus keeping afloat people who have got themselves into a position from which there is little chance of extricating themselves unless this can be done by big concessions in the amount of the mortgages due by them to their respective lenders. Judging by the reports of cases referred to our courts, there appears to be a difficulty in determining when the moratorium actually expires. There seems, however, to be a consensus of opinion that the mortgagors are protected until March 31, 1925, and then the mortgagees can only call in their money 'by giving three months’ noticeL In other words, the borrowers are protected until Juno 30, 1925. By that time no doubt Parliament will have reassembled, and it will bo interesting to see if sufficient political pressure will be exerted to provide for a further extension of this much-abused moratorium. I know of no cbunlry in the world where a moratorium: has been so long in existence. “Some comment has been made upon the slight reduction in the value of wool auctioned in several centres. I believe that is chiefly duo to the fact that there has not. been shipping space available to lift all the wool as purchased by the representatives of the different wool-buying houses in various parts of the world. The position in this respect has been materially improved by the action of the woolbrokera in agreeing to limit or reduce their offerings at the recent and nearby sales. Of course, the position in regard to Australia may be severely prejudiced by the unfortunate happenings in connection with the waterside and the maritime workers, which to-day means the holding up of an enormous amount of shipping. On the whole, I should say the outlook for this dominion is brighter than it has been since the Great War, ‘but I very cordially endorse the advice given by Mr Massey to all classes of the community—namely, that they should endeavour to make themselves snug financially whilst they have such an excellent opportunity.