SUGGESTED MORATORIUM

Taranaki Daily News, 5 December 1930, Page 11

SUGGESTED MORATORIUM

‘‘UNWISE AND UNPOLITIC”

SIR HAROLD BEAUCHAMP’S VIEWS.

DELETERIOUS EFFECT ON CREDIT. By Telegraph-—-Preen Association. Wellington, Dec. 4. Sir Harold Beauchamp' expressed the view that a moratorium was unwise and impolitic, and 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, I the result of which had been so disastrous to the farming, community to-day, ‘although many farmers unable to pay interest were being treated with the utmost leniency by the mortgagees. - Financial institutions recognised that it was unwise to force farmers to walk .off the land and, therefore, would say ‘‘Carry on; do the best you can till fin--ancial conditions improve.” . . In addition a moratorium would have a most deleterious effect upon New Zealand credit abroad, particularly in the London .market. People in Ney land would look askance at 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 hand out money to farmers if We felt we'could- not call it up at any time we wanted to. That is where the restriction, would hit.us. At present we are largely in the dark in regard .to the moratorium. It may apply to land’mortgages only.” He expressed the view that instead of a moratorium it would be far better if the rural credits system were extended.

FARMERS’ SECRETARY’S • VIEWS.

“MERELY A BRIDGING POLICY.” Auckland, Dec. 4. Commenting on the suggested inoraoriuni Mr. Robinson, secretary of the luckland Farmers’ Union, said he beieved it was necessary, merely as a □ridging policy to give farmers a fair deal p” l to .prevent, the Dominion from losing a great many expert farmers. A short moratorium until Parliament could deal with the question more thoroughly seemed indicated. Something much more drastic might be necessary if present prices continued. A financial authority opposed the proposal, saying that the cure was worse than the disease He did not see what good the moratorium did beibre, nor what good it could do now. The institution of which he was a. member hadr always helped the trier and. the nohdeserved, no, consideration.