SOLDIERS' DEBTS

Dominion, Volume 12, Issue 217, 7 June 1919, Page 8

SOLDIERS' DEBTS

PROTECTION OF THE LAW EXTENSION OF MORATORIUM THE CASE DISCUSSED A statement/has been issued from tlio ofticr. of the Minister of Defence regarding tho protection being provided by the Legislature to soldiers threatened with action for debt. The new -proposal is that the protection shall be extended to covor soldiers after discharge, following is tho text_of the statement:--Some time alter the declaration o? war it was found necessary to make provision by War ltcgiilalions protecting men then joining tho ■ Expeditionary .forces, and those who had already joined those forces, from undue prcsunj by creditors. In July, 1!)16, tho first regulations 011 tho subject were gazetted •making provision that a soldier might not be arrested or proceeded against uudor certain statutes without the previous consent of a military authority. When compulsory enlistment became the law in 1910 it was found necessary to extend the scope of the protection, as it was. obvious ihat tho men called up might in mauy casts find themselves in consequent financial difficulty and in flangor of undue, pressure. Therefore, in March, 1917, further regulations wero passed making provision that tho previous consent in writing of tho AttorneyGeneral- should be nccessary before, tho issue' of ally execution against the property of a soldier, or the seizure or salo of such under distress for rent, or this filing of any petition in bankruptcy against a soldier. By a later regulation the Attorney-General was required to obtain tho report of a stipendiary Magistrate before deciding whether or liot lis would permit tho process,

■ So far as is known there has been w> objection to those regulations, those regulations m any manner prevented the families or representatives of men absent on service with tho Expeditionary Forces from obtaining credit.

But those regulations protected a mn;i from process only so long as lie remained a member of the Expeditionary Forces and was in receipt of military pay. More recently liio position of the men who have been discharged from the Expeditionary Forces, and thereby placed, l;-e----yo!ul the limits of protection, iius demanded the consideration tirst of Parliament by statute and i|ion of the Government by regulation. It was felt:to .be impossible ';o refuse some measure ot' special protection to soldiers returned from the war and beginning again their work of earning their livelihood as civilians. Therefore, Parliament in the year 1018, by section 26j of the War Legislation Act, empowered the Governor-Gen-era 1-iu-Conneil to make such provision as he dee/ned.'juHt and necessary for tho protection of discharged soldiers from this execution of civil process,, proceedings ill bankruptcy, forfeitures, distress for rent or re-entry, exercise of a mortgagee's power of sale, or lliu enforcement iu any other manner of the civil obligations or liabilities of discharged soldiers. Tho Government could not avoid exercising 1110 powers thus conferred upon it, and therefore advised His Excellency to make the regulations of May 2,11)11), preventing evtcution, or bankruptcy process against, or the exercise of powers against the property of discharged soldiers without the previous consent of the Attorney- , General, which consent can only be.given upon tho recommendation of a stipendiary magistrate. It is perfectly clear that; neither the stipendiary magistrals in his recommendation, nor the Attorney. General in tho exercise of his powers, would refuse leave to a creditor to proceed in the ordinary manner in any case where it was fair and right that such process should be issued. In several cases under the preceding regulations relating to men actually called up for service" ■ the permission of tliu Attorney- ' General was granted tu issue execution or commence bankruptcy proceedings where it was considered that the soldier was taking undue advautago of the regulations to defeat the just claims of his -creditors. It lias been .said thai the effect of this limited protection is thaireturned "soldiers are unable to obtain credit. Hut it may be pointed out. that the same objection has been raised in relation to l:lm analogous legislation protecting soldiers and tliejr wives from eviction from Iheir houses] and to legislation of the same nature affecting the whole public, such as the Mortgages Extension Act. 111 the'case of the JlortExtension Act mortgagors were allowed to contract themselves out of tho protection, with the result that every mortgagee inserted a clause to that effect, and consequently the. Act very Shortly became practically inoperative. The same result would follow iu the casu of' the necessary protection afforded by the regulations relating to discharged soldiers, if contracting out were permitted. Hut in any case tho Government has the duty imposed upon it of ensuring that the men who aro now entering upon their now avocations shall not be unfairly harassed in the'first year of their exertions, and the Govornmept cannot believe that aiiy traders trill refuse to deal with a discharged soldier on the . sole ground that the traders would have to obtain tho consent of tho Attorney-General bei'oro selling up lije property of tho soldier or making him bankrupt.

It was, however, represented lo the Government' that banks and the large trading concerns were in most cases required by .their respective constitutions to advance only upon unrestricted security. A'ml lo meet such cases'the amending regulations of June 2 Jmvc beOn gazetted enabling process to be pursued by that class wilhuut the consent of the .Attorney-General, where the proceedings ,aro to tiecure tho balance of a trading account current. Tho exemption is limited to banks and approved trading companies and approved merchants, the approval being necessary to' prevent ordinary money-lenders and that class of dealer from having unlimited power to harass the debtor. Tho antecedent approval of the Attorney-General of any .trader as an approved merchant will enable that trader to take any process to recover the balance of his account current with a discharged soldier without further .permission trom tho AtloraoyGeucral. No lpgitimate trader can now offer any reasonable objection to the protection, or have any ground for refusing credit lo a returned soldier. Tho following classes of soldiers and discharged soldiers are protected by the regulations from process without tho eonsout of llie Attorney-General, but only for the periods hero defined:— 1. A soldier who is slill a member of llio Expeditionary Forces is protected ■until his discharge and for twelve'month-! thereafter. -. A. discharged soldier is protected for the period of twcive months trom the date of his discharge, but no longer." The protection applies in respect of debts of tho sojdior concerned after, as well as before, his discharge. li. An assisted discharged soldier; that is, a discharged soldier who is indebted to the. Crown in respect uf a loan granted to tiiin under the Discharged Holdiers Settlement. Act or the Repatriation Act, is protected so long as his debt lo the Crown remains unpaid.