LIFTING OF THE MORATORIUM

Wanganui Chronicle, Volume LXXXI, Issue 18822, 12 July 1923, Page 5

LIFTING OF THE MORATORIUM

ITS EFFECT ON MORTGAGES DISCUSSION IN PARLIAMENT (By Telegraph). (From Our Parliamentary Reporter). WELLINGTON, July 11. Within the last few days several members have urged that the Government should ascertain what amounts are held under mortgage in the Dominion in order that it might be possible to estimate what the position will be when the Moratorium ends. Replying to Liberal criticism during the financial debate to-day, Hon. Pair declared that there was nothing like £160,000,000 iu mortgages sheltering under the Moratorium. Mr Wilford: “No one said that.” The Minister: “Oh yes they did.’ ’ Mr Wilford: “1 don’t think you would know.” (Laughter). The Minister said he had no doubt that a large number of mortgages were affected by the Moratorium, but at an outside estimate he considered tiiat only half the number of mortgages might be so affected. So long as a man paid his interest he was not interfered with, but if he fell into arrears then the Moratorium had no effect. It was clear that the great majority of mortgagors to-day were paying their interest. Lifting the Moratorium would not affect the situation very seriously. There were sufficient resources in the country to enable any man to finance at a moderate rate of interest. A man who was looking 18 months ahead and fearing the lifting of the Moratorium was most often a man with little or no capital, who in recent years had gone in for an estate costing thousands of pounds, and had loaded himself up to the neck with mortgages. He knew of a case where a man had bought property for several thousand pounds aud had put down only £4OO cash. That man was feeling anxious about the Moratorium. Who was to blame? Mr L. J, Howard: “The Government.” “You cannot nurse fools all the time,” replied the Minister. “If the Moratorium were lifted to-morrow, I believe that in 75 per cent, of the cases the mortgagee would not ask for his money. He does not want it. He wants security.” Steps outlined in the Budget would be quite sufficient to meet the situation. By means of generous advances the Government was coming to the aid of people who had reasonable security.