THE MORATORIUM

Dominion, Volume 15, Issue 15, 12 October 1921, Page 8

THE MORATORIUM

QUESTION AS TO RATE OF INTEREST. At the monthly meeting of the Council of the Central Chamber of Commcrcfl yesterday the chairman (Mr. A. L. Hunt) moved—-" That this chamber opposes tha suggestion to fix the rate, of interest on deposits under the moratorium of.bf P<W cent. The interest rate should be based on the current bank rate for overdrafts and should rise or fall according to tho bank rate which the depositor may have to pay should he bo compelled to get-fc tank accommodation by virtue of the fact that his own funds arc locked up under the moratorium.” Mr H Hart seconded the motion pro forma. He did not agree with the suggestion that tho rate of should be left to the banks. These financial institutions already had ample means of showing their strength, and this could give them more powers. Mr. A. L. Hunt said it. was unthinkable that the banks would use such power to onv ulterior end. Mr Hart said that some very peculiar things had happened. There mis the recent drop in the Bank of England rate It might be that the bank inshed to stabilise things, but it might have been done for quite another reason. Ito thought that the sooner they were able to get away from restrictions of any Lind tho better, and that for the tut me the rate of interest should be left to private contract or treaty. The chairman said that at least it was unfair for a man to bo asked to pay more in interest than ho was getting •for his locked-up money. The motion was carried by four votes 10 (w< ’ The g e p O sit s Problem. Un tho question of deposits Ihe man moved and it wos decided:- I hat this chamber urge noon the Government the necessity of providing a cla,lsl in tho proposed Moratorium Rill dealing with deposits; whereby any firms or individuals ■accepting deports in the it tore mav contract themselves out of tire provisions of the said or any future le?slation dealing with depots.