“ RESULT WOULD BE DISASTROUS”

Star (Christchurch), Issue 19239, 28 November 1930, Page 8

“ RESULT WOULD BE DISASTROUS”

STRONG OPPOSITION TO GENERAL MORATORIUM. Strong opposition ta a suggestion that a moratorium on mortgages and deposits should be declared by the Government was expressed to-day by Mr W. Machin, general manager of the New Zealand Farmers’ Co-operative Association. “I hope there will be no proposals for a moratorium by the Government,” Mr Machin, said. “A general moratorium would do more harm than good. There are some people who would welcome it, and it might probably be useful to them,.but there must be far more whom it would injure, and its effect on general business confidence would be disastrous. Hard Times. “Times are hard, admittedly, and there are many people, farmers especially, who cannot meet all their obligations, but there is a general recognition of this, and I have recently been pleased to see a number of practical and general compromises between mortgagees and mortgagors, and others which have eased individual situations. “This is the proper spirit, and the practical way of meeting present difficulties is to take each case on its merits and apply its own special remedy until the clouds roll away. But deliver us from more general legislative enactions of this sort. If the Government will only stop interfering with business and apply its talents to putting its own house in order it will do better work. “Probably there is scarcely a business concern in the Dominion which has not recently carefully revised its overhead expenses and cut them down to meet the present situation; that is, has cut them down where it has not been forced by law either to maintain them or increase them. Shy Investors. “Land tax has increased, import duties have increased by 22& per cent, and the total of Government expenditure has increased. What is the main cause of private investors being shy of investing in land or business? Government interferences and exactions, and competitions and the fear of more of them. Therefore, if the Government cannot put its own house in order, at least let it hold its hands off the private business of its nationals. I am not blaming the Government in particular. Most Governments are the same.”