WELLINGTON NOTES.

Hokitika Guardian, 19 September 1924, Page 4

WELLINGTON NOTES.

A MORTAGAOEE’S HARDSHIP

(Special to “Guardian”.)

WELLINGTON, Sep. 17

J’lic decision of the lloti.se to prolong lie moratorium until Julv hist, lias

not given satisfaelion to any lmt n lew who are sheltering hehiiltl the legisla-

tion. A inorttigagee aho appears to have some hardships under the moratorium protests in a local paper and furnishes particulars of the nature of his hardship. He stated that by dint of hard work, and with the help of endowment policies lie managed to accumulate CIA,0(10. This money, on the advice of his solicitor, he put out on three mortgages of town property. In IftAA, he was requested hy one mortgagor to renew, hut declined the request. The same thing happened with the other two mortagors. He alleges that in all eases the money could have heen obtained elsewhere, hill they were waiting to got it at !i per cent, and so sheltered behind the moratorium. To find money for his needs he had to mortgage liis home and also his life insurance policies. for the first time in his life he is unable to pay his accounts, and all the money ho is using has heen borrowed from a haul; and he has to pay His per cent more for this than he is getting from those who have borrowed from him. This perhans is not a singular experience, and the effect of it must he to break confidence. Call if he wondered that people are averse to lending on mortgage. Borrowers in New Zealand seem to think that money should lie lent them at lower rales than are ruling elosewliore and without regard to the volume ol credit available for the purpose. The lending rate in the North Island is said to he IP. per cent, and in the South Island li per cent. Those, of course, are the minimum rates, and actually borrowers have to pay more. Ac< coding to advices from Australia, loans nil city properties in .Melbourne are commanding from S per (cut Howards, on luoad acres in Victoria i lie rate is 7 to 71 per cent., and municipal loans generally carry 7 per cent. Last year local bodies were obtaining their money at ~i\ per rent, and now fiml it difficult to get in money even at 7 per cent. It is only a mailer of time, when the high rates will he ruling in New Zealand, for what ali'eels the Comuionweallh is sootier or later felt in the Dominion, for the relationship between the two countries linnncially is very close. TRADE SLACKNKSS.

There is undoubtedly some slackness in hiisiiie.-s in Welilugloli, iust now. and one hears of friends and nequaiiitailees being turned out of jobs because there is nothing doing. As yet the number of those out of work is small, hut it is very (list olieerting to find trade dull just when the country is about tu begin its prolii taking. The export season is just about to commence and presently butter and cheese will he moved towards the seaboard for shipment abroad. In a very little while the wool hales will he piling-up

in the stores in readiness for the sales, and later on frozen meal, tallow, hides, skills and hemp and the other commodities which form our exports will he pouring into the ports for shipment. Business ought now to lie showing every indication of aetivily instead of being dull and spiritless. Another sign of the slackness is the number of empty shops that are In he seen even ill the best business st reels. Bents are of course very high in Wellington, absurdly high, and for a tenant of a shop to pay his rental promptly he must have a good steady trade. That, trade is absent now. and with the empty slums the prospects are that landlords will lie forced to scale down their rents. Solve shops have been empty ler week and the landlords will presently lire el re-ill;' I lie premise, vacant. When tine re.di c that high (.ill al . arc Ic 1 1 In I- had the, will modify their demands. How long I Intrude slackness is going In last lin olio can sue. perhaps in another month there will he an improvement . hut should this expected improvement not materialise then there will he great hardship experienced m-xt winter. itISINC: WOOL .MABKKT. Wooihrnhers are delighted wilh the improvement shown in the London and Australian wool markets. Of course the rise of Id per cent i-. merely a ret ovary from I lie drop experienced at the London sales in July. '1 he Sydney sales began last .Monday and Micro arc to lie seven selling days to deal with about .1 1 ,fUM> hales, equal to about 7,7-7) hales a day. 'flint appears to lie a more satisfactory way of dealing with the elio than is the eu-e in New Zealand, where, owing to the iiuiu.-r----olt.s selling centres, and the necessity for buyers being oil the move constantly huge catalogues have to he put through in a few hours. The change has come over the wool market in the short spate of eight or nine weeks shows that wool demand is linin' nr less an uncertain quantity. Two months ago everv one interested in the trade was inclined to take a pessimistic vi-w. Now c lie pendulum lias swung in the other direction and optimism. prevails, lor the outlook at the moment appear, decidedly goad. Compel it inti for wool is now wider than it was' prior to the war, as more countries are handling the raw material, that is their textile industries arc equal to manipulating the raw material through all its stages to the finished product. Although the immediate outlook is good on a long view of the situation there are possible dillicullics ahead mainly, if not entirely, financial. The next live or six weeks will decide the mat tor.