MORATORIUM PROPOSAL

Wanganui Chronicle, Volume 73, Issue 441, 5 December 1930, Page 7

MORATORIUM PROPOSAL

CONTRASTING OPINIONS “CURE WORSE THAN DISEASE’’ [Per Press Association.] AUCKLAND, Dec. 4. Commenting on the suggested moratorium, Mr Robinson (Auckland Farmers’ Union secretary) said that he believed it was necessary merely as a bridging policy to give farmers a fair deal and prevent the Dominion from losing a great many export farmers. A short moratorium until Parliament could deal with the question more thoroughly seemed to be indicated. Something much more drastic might be necessary if the present prices continued. A financial authority opposed the proposal saying that the cure would be worse than the disease. He did not sec what, good the moratorium did before nor what good it could do now. The • institution of which ho was the head had always helped the trier and the non-trier deserved no consideration.

A BANKER’S VIEW BAD EFFECT ON CREDIT [ Per Press Association. ] WELLINGTON. Dec. 4. Interviewed, Sir Hnrol.l Beauchamp expressed the view that a moratorium would be unwise and impolite. He stated that it would have been wise had the moratorium been lifted after the signing of the Armistice, when owing to the high prices farmers would have been able to discharge or largely reduce their financial obligations, instead of purchasing high price lands, 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 mortgagees. Financial institutions recognise that it would be unwise to force farmers to walk off the lands, and they therefore say “Carry on. Do the best you can tiil the financial conditions improve.”

Tn addition a moratorium would have a most deleterious effect upon the New Zealand credit abroad. pa:V.cu!arly on the London market. Furthermore, people in New Zealand would look askance for applications for money to bo advanced on land It would only be a question of time before the State would be the sole mortgagee, which was a position no one would care to see.