WAR LOAN CONVERSION.

Waikato Times, Volume 112, Issue 18777, 27 October 1932, Page 8

WAR LOAN CONVERSION.

CHANGE FOR THE BETTER. ACCUMULATION OF CAPITAL. (By Telegraph.—-Special to Times.) AUCKLAND, Thursday. Speaking at the annual meeting of the South British Insurance Company, the acting-chairman, Mr. W. R. Wilson, commented on the recent conversion of the British five per cent, war loan and the subsequent rise in the quotations of other stocks. He said that any idea that this change for the better in the borrowing power might be due to improved economic conditions was discouraged by the lack of evidence of any material improvement in the prices of raw materials and produce generally. On the contrary, the change seemed chiefly attributable to the accumulation of capital for which, owing to depressed trade, there is little outlet, and which. Is seeking safe investment, even at unagressively lower rates of interest,: Mortgage Legislation Criticised. Criticism of the mortgage legislation was made by Mr. Wilson, who said it had not only stifled the spirit which had been bringing about voluntary adjustments of mortgages, but had led to a demoralising disrespect for contractual obligations. It was scarcely an exaggeration when a leading legal authority stated recently that a generation was growing up which, understands a mortgage to be a document signed by a mortgagor, containing an implied covenant by a mortgagee agreeing to a moratorium.