The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 15, 1924. THE MORATORIUM.

Hokitika Guardian, 15 August 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 15, 1924. THE MORATORIUM.

The bill now before the House ns affecting the moratorium dealing with the iile of moitgages, proposes to extend the pieriod of relief another three months. As the law stands, the moratorium on mortgages was to expire at the end of the year, hut the hill now under consideration will extend the period to March 31st. next. This is to meet the criticism which has been advanced for some time as to the hardship involved by terminating the relief which the period of grace provides at the earlier date. Mr Wilford, as an amendment to the measure, proposed a further extension of eighteen months, hut this was defeated iii tiie early hours of the morning l>v 33 to 20. The l-iilmr party lias a lengthy amendment on the stocks also, m which the general principle of the moratorium is to he extended under a number of provisos, not the least important being that the State may take over mortgages. The Government Bill, it- would appear, is likely to find its way on the statute book. There is pf course a very large amount of jitney jpvolved in the mortgages at

present held up, and the limits of the legislation at present aflerting nioitgiige.s lias bad no doubt a considerable eli'ect on the money market. Still, money is as cheap in New Zealand a.s in most places, and where the securities are good, is lorthcomilig very readily. The difficulty under the moratorium is specially marked in regard to tho liigli-priied land. The purchasers have paid too much lor it. and the accommodation they were forced to obtain is costing them too much. 11 is impossible to realise on such pio|ci ties to advantage, and the moitgngors cannot face the loss in a loreed sale. They have a double difficulty—first, in meeting their financial engagements on the mortgage to advantage. and .secondly, tho inability to sell to any advantage. In this I light tbey ale bolding oil to the land and Poiiig no good or walking oil and losing all they put into it.. While the moratorium lasts they may not he put o|f, hut the time is short now for uiiythiiig to turn up. New Zealand lins kept the moratorium in force longer than any other country, which is something to the ciedit. of the financial pulse of the Dominion, hut. it- is an open ipiestioii whether the protracted delay in the matter lias been a blessing or otherwise. 'I lie plight of the pco| le oil the land who are in linnneial difficulties has not mended. Many of them are worse off hv hemming more involved. The theory to cut the losses and make a fresh beginning .lias long been favored. -Act 11 — allv the measure will provide two courses. There "ill he the ending of the moratorium for all cases where the fuiniieial outlook is impossible or hopeless. Where there are prospects of the mortgagor pulling through. he may go to the Supreme Goiirt by a simple procedure ami if he can show that ho has a reasonable chance of recovering his position in a reasonable time, lie will receive the benefit of an extension of the moratorium in his special case. This seems iho most, practicable wav o! eliding the matter with a degree of lain less all round. Probably there will be some cases of hardship for they exist already— but it is difficult to meet all eases adequately, and apparently the host is being done in the circiim,stances.