The Moratorium.

Hokitika Guardian, 6 May 1922, Page 1

The Moratorium.

“MISCHIEVOUS EFFECT.” COMPANY DIRECTOR’S’ ADVERSE COMMENT. WELLINGTON, May 3. Speaking yesterday at the annual meeting of the New Zealand Investment, Mortgage, and Deposit Company, tlie chairman of directors,- Mr W. 0. Foster, made reference to the moratorium. “Owing,” he said, “to the mischievous effect of the moratorium of 1919, and the inclusion of deposits in its embargo, this company’s business was very seriously hampered, and its smooth running threatened. In view, however, of such bad weather in-

dications, your directors wore not unprepared for the squall, and by maintaining a substantial credit balance in the hank account were enabled to meet all" call and short-dated deposits, as well ns any cases where the withholding of payment would have entailed hardship. Of course, the withholding of a large sum from investment on mortgage for the above purpose has been felt in the profits for the year, hut, considering the object which lias been successfully achieved of meeting such engagements, notwithstanding the liberty to withhold conferred by the Act and the consolidation of the company’s reputation as well as the cementing of its business connections, tlie decline in profits will not prove a useless sacrifice. At this stage 1 wish to express your hoard’s warm appreciation of the sympathetic cordiality of its depositors, who, in many cases, must have suffered disappointment at the enforced hold-uj) of their funds, hut who, realising that it was from no fault of the company, took their gruel gracefully, and with assurances of goodwill and continuance of business when the clouds roll by, I think the Tolling by’ has commenced.

“Readers of Parliamentary literature will lie' aware that a Parliamentary Commission was set up during last session to consider and report upon a hill for the further extension of the moratorium, printed copies of which hill were early hi the hands of the companies interested. The less said about this bill the better, bill it is not desirable Id pass it over in silence, and I here wish to express, at any rate, my personal opinion, that it met its incriied fate ’in its complete rejection by the Commission, which, however, framed another more favourable to the ic-establishment of financial conditions, but widths till loaves room and necessity for further tinkering at next session—that is, if it is to be continued lo its legal termination. “This Act, in' the opinion of your hoard,disclosed no advantages for this company, and it was, therefore, decided to withdraw from the supjxi.sed shelter of its protection, and to resume normal conditions. Tn so doing, the hoard has been assured of the best support of its depositors, and feels confident of the future.”