BRIGHT PROSPECTS.

Poverty Bay Herald, Volume LI, Issue 16630, 9 January 1925, Page 6

BRIGHT PROSPECTS.

SIR IT. BEAUCH AMR'S VIEWS. TIME FOR DIGC!TNiI IN. (Per Press Association!.) WELLINGTON, lust night. Sir Harold Beauchamp, interviewed with regard (o the. financial position during the year j list- closed and the outlook for the current year, said a distinct, improvement. has taken place in New Zealand and Australia. No douht a large amount of el arming up was necessary, especially among farmers and others, who suffered so severely from the slump in 1920-21. Many of these farmers were faced with big debit balances, and during the past 18 months nr two years they have been busily engaged in reducing their indebtedness and putting their financial affairs on a move 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 a falling-off in trade, especially that coming from their farmer friends. This was particularly noticeable in the Auckland district and other parts' of tie' North Island more than in the South. Now. with phenomenally high prices ruling for wool and other produce, farmers are able to spend much inol'o freely, with the result that there, is a distinctly more cheerful tone amongst all classes of traders in every part of the Dominion. “Profiting by past experience, many farmers recognise the necessity lor paying off or substantially reducing their mortgages instead of employing surplus funds fur other purposes. If tins police be continued, it is only a question >./ a short time whom the farmers of this country will bo in an almost enviable position. It. is true there are still a number sheltering under the moratorium, which prevents mortgagees from realising on their securities. I am one of those who regret that the moratorium was not lifted at the close of the armistice, instead of being pro-longed and thus keeping people afloat who have got themselves into a position from which there is little chance of extricating fhern- . selves, unless this con be done Iby 'big concessions in the amount of mortgages due by them to their respective lenders. Judging by reports of cases referred to our courts, there appears difficulty in determining when the moratorium actually expires. There seems, howover, to be a consensus of opinion that mortgagors are protected until March 31, 1925, and then mortgagees can only call in their money by giving three months’ notice. In other words, borrowers are protected until June 50, 1925. By that time, no, doubt, Par!ia- ' merit 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 muchabused moratorium. I know of no country 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 the several centres. I boi jievo that -is chiefly due to the fact ! that there has not been shipping space 1 available to lift all the wool as pur- . chased by representatives of the different wool-lbuying ho-iises in the various parts of the, world. The position _ m this respect has been materially im--1 proved by the action, of the wool brokers in agreeing to limit or reduce offerings ’ at- the recent and nenr-by sales. > “Of course, the position in regard to 1 Australia may be severely prejudiced by unfortunate happenings in connection with the waterside and the rnavil time 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 of a I more roseate Idle than it has been for 1 some time since the Great, War, but 1 j very cordially endorse the advice given by ’ Mr. Massey to all classes of the community—namely, that they should ■ endeavor" to make themselves snug i financially whilst they have such an eix- ' cel lent- opportunity.”