A MORATORIUM

Evening Post, Volume CX, Issue 134, 4 December 1930, Page 10

A MORATORIUM

VIEWS OF BUSINESS MEN

GOVERNMENT'S ACTION

The request made to the Government yesterday by a deputation representing the dairying industry, that a moratorium should be declared in Now Zealand in order to give farmers an opportunity of recovering from the difficulties they are encountering as a result of the decline in the prices of primary produce, has naturally given rise to considerable discussion. While it is admitted on all sides that farmers are passing through one of the most serious crises in their history, the opinion is generally expressed, particularly in commercial and banking circles, that it would be a mistake at the present time to put a moratorium into operation, owing to the upsetting influence it would have. Prominent business men who were interviewed to-day pointed to the fact that mortgagors at present were being very leniently treated by mortgagees, and were being encouraged to carry on until economic conditions improved. It was also pointed out that a moratorium would have a bad effect on New Zealand's credit abroad, and would lend to a general tightening of capital at a time when it was necessary that money should go round. In Government circles it is not anticipated that any hasty action will be taken. In accordance with the promise given to the deputation yesterday, Cabinet has already set the wheels of inquiry in motion. It is understood that members of Cabinet met heads of Government Departments in conference last evening and discussed the whole position. Although no official intimation has been given of the outcome of the conference, it is stated that the general consensus of opinion was that nothing should be cone until it was definitely proved that mortgagors were being unduly pressed by financial institutions. No such evidence is yet forthcoming, it is stated; in fact, the weight of evidence is that banks and stock and station agents have been acting very generously towards their clients. From what can be ascertained, no definite decisions were arrived at by the conference last night, and it is considered unlikely that any definite steps will be taken until it is possible to hold a full meeting of Cabinet. That will probably be possible next week, when the Acting-Prime Minister (the Hon. E. A. Ransom) is expected to be back in Wellington.