“ DISASTROUS TO HAVE MORATORIUM.”

Star (Christchurch), Issue 19239, 28 November 1930, Page 14

“ DISASTROUS TO HAVE MORATORIUM.”

RUMOURS OF CABINET ACTION DISCREDITED. Rumours in circulation in the city to the effect that Cabinet is contemplating declaring a moratorium on mortgages and deposits are discredited by leading commercial men, who assert that such a step at the present time could only have disastrous effects. December 1 has been mentioned as the date when the moratorium was likely to be announced, but it is believed that this statement has absolutely no foundation. Would be Disastrous. “It would be entirely wrong for the Government to take such a step at the present time,” said Mr W. Machin, general manager of the New Zealand Farmers’ Co-operative Association of Canterbury, yesterday. “It is impossible to apply a general moratorium to business without killing it. I have never heard any suggestion that such action should be taken by the Government, and I don’t believe for one moment that the Government would be so foolish as to interfere with ordinary business in this way. It will not be possible to bring about the adjustment that is so badly needed if there is any interference of this sort.” Mr C. P. Agar, past president of the Associated Chambers of Commerce, also declared that he had never heard of such a proposal, and he remarked that no one with a proper understanding of the Dominion’s problems to-day would urge that a moratorium should be declared. “It would be disastrous,” he added, “as it is impossible to peg things up in this way.”