UNWISE AND IMPOLITE

Poverty Bay Herald, Volume LV, Issue 17433, 4 December 1930, Page 13

UNWISE AND IMPOLITE

MORATORIUM SUGGESTION SIR H. BEAUCHAMP’S VIEW (Per Press Association.) WELLINGTON, this day. Interviewed ta-dav. Sir Harold Beauchamp expressed the view that a moratorium would be unwise and impolitic. lie stated that it would have been wise had the moratorium' been lifted after the signing of the Armistice, when, owing to high prices, farmers would have been able to discharge, or largely reduce their financial obligations, instead of purchasing high-priced lands, the result of which Lad been so disastrous -'to tlie farming Community to-day. Although many farmers were unable to pay their interest they wore being treated with the utmost leniency by mortgagees. Financial institutions recognised that it was unwise to force farmers to walk off their land's, and therefore said: “Carry on. Do the best you can till financial conditions improve. ’ ’ In addition, a moratorium would have a most deleterious effect upon New Zealand’s credit abroad, particularly on the London market. Furthermore, people in New Zealand would look askance for applications for money to be advanced on land. It would .be only a question of time before the State would be the sole mortgagee, which was a position none would care to see. “A moratorium would possibly restrict us,’ said a commercial man. “We would not be'inclined to band out money to farmers if we felt we-could not call it rip' fit any time we wanted to. That is where restriction would occur, though tit- present- we are largely in the dark in regard to the moratorium. It may apply to land mortgages only.' Ttisteitd of h moratorium-ho expressed the view that- it would Tie far better ii the rural credits system were extended.