A CRISIS THAT MUST BE FACED.

Star (Christchurch), Issue 19243, 3 December 1930, Page 9

A CRISIS THAT MUST BE FACED.

MORATORIUM WOULD BE LAST WEAPON USED. Per Press Association. AUCKLAND, December 3. Asked to-day if the Government had considered a moratorium, as suggested by a recent meeting of farmers, the Hon A. J. Stallworthy said the terrific fall in export prices had produced a crisis that must be faced. The moratorium was one of the last, if not the very last, of the weapons to be used. Its repercussions were sometimes more disastrous than the immediate evils it sought to remedy. The Government had reason to’ feel assured that it would be the banks’ policy to assist both primary and secondary industries over the difficult period. The inexorable demands of the stressful times would make it hard for the man with one big farm or more, plus a city residence, a seaside residence, sundry speculations, two motor-cars and a bank overdraft. The bona fide farmer or business man with a good reputation and reasonable prospect was not in the same category. _ He had a fair claim on the financial institutions which was likely to be met. The whole resources of the Government were being used to safeguard the position.