The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, SEPTEMBER l5th, 1924. EXTENSION OF THE MORATORIUM.

Hokitika Guardian, 15 September 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, SEPTEMBER lsth, 1924. EXTENSION OF THE MORATORIUM.

In' connection with the consideration liv Parliament of hringing the moratorium to a close, an unusual position has come to light. The term of the moratorium is to he extended practically to the end of l!)2d. That is an added nine months to the termination point fixed'by the (love: nment proposals. The alteiation is proposed by the Committee to which the matter was referred, .and the unusual Position has come to light from the fact that the prime Minister and seme other members of the Gvernment are opposed to the further extension. Originally the moratorium was granted as a war measure some ten years ago—one of the first acts of the Government of the Dominion, in fact, after the outbreak of war. It was design-, ed for the protection of mortgagors during the period of the war. Naturally at the time it was not thought possible the war would extend for five years, and least of all was it in mind that for n further five years the protection of the piorfltorium would he afftii'dfcl morteaftirs. At the outset it

served its purpose as a salvguard to prevent a liiuuieial stringency through *lll v panic arising out ol the eoiidition.s i,| i!:e wav. Hut as time went on it was found that for its primary j depose the moratorium had out ived its usefulness. Hut in the interval there bad been a tangle ol events which brought up other tnmlilimis. and "lien peace was ushered in nominally in the end of the war— tho limurcia| [light of many morlgagt In was such that they were able to induce the (love:nmeiit to extend the | eriod of the moratorium, and that has been going on ever sime—and tbe end is not yet. Hut before the end of the war, primary products soared to a high priic and land values went up. Burrowing went 011 in sympathy oil inflated values, so that when tho markets slumped, those with heavy mortgages (oi)ld not meet their engagements, and to prevent foreclosure and llimiieial disaster. it \\v.s i'.eeessa:y to still further invoke the fiiemlly [roicition of the moratorium. It ha- I een put very well Dial llie moratorium is | act of a vicious oir. le. l and values are still in-lla-te I because of the moratorium, which prevents Inpiidnt ion, and the moratorium is eontineed because land values are still inflated. ISolh Britain ami Australia lcmovcd the moratorium automatically when the war was over, but New Zealand, like the illlforl illiale with the drug habit, lias bad too long mi indulgence with a bad habit, and is til.ding it dillieiilt now to give it up. One very evil elfeet of the moratorium, apart fit in the unsettlomcnt of finance within the Dominion, is the fact that money for investment is being driven out if the country. Australia is offering better interest and free from

mo'.ntorii’m rest cations, the nancy i.s going a" av from the i ouitiy. The

amoiiul is said t > l.e lory i.ul-lao-tial. Meantime inflation ol' land values at false prices continues and settlement is retarded. The country is suffering both directly and indirectly because of the lack of its mu rage to laic the -position. The mol atorcum is but postponing the evil hour, and if. in the meantime, juices for primary products should fall, the general condition for the country will be so much the worse. Really the situation calls for courage and not fear in action.