The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 20, 1031. HELP FOR MORTGAGORS.
Tub fact tlmt action in politics is often, particularly in special circumstances like the present, a choice between two evils, is illustrated hy the proposal that a special tribunal should be set up to adjudicate between mortjrairor and mortgagee. A character in a modern novel, recalls it contemporary, expressing his impatience with doubters, said that .action was always easy ; you' simply thought out the right course and followed it. Here, of course, the whole question is begged. What is the right course? This country has had painful experience of a moratorium. That enactment was justified during the war, hut it was prolonged far too long into the peace, and in the end it cost the farmer dear. The wells of lending shrank; this form of seeuiitc had been depreciated by the interference between lender and borrower. Lately there has been fresh talk ol moratorium legislation, but though the idea has receiv'd little support, the Government has proposed what amounts to a modified moratorium. A month (ago the Prime Minister referred with wisdom and sympathy to the perilous financial position of many
farmers. Ho appealed to mortgagees to meet mortgagors half-way, announced that Crown Lands Commissioners would he instructed to act as mediators, and said that a special tribunal would be set up to hear special eases, ft was hoped, lie add’d, that nor. many cases would reach this Court. That is always the hope. It was hoped in the early days of our arbitration system that the Conciliation Courts would settle most of the disputes, hut gradually application to these lower courts came to be <a formality. Now Mr Forbes, says, in reply to a Reform question, that a tribunal is to he sot up and the Bill bias been introduced into Parliament to decide whether a. mortgage should be called up at once or whether action should he postponed. It. is to he hoped that the conciliation side of this policy will rot he overshadowed by compulsion, yet, if the mortgagor is to he protected, how can compulsion be entirely dispensed with? This is the cenfral difficulty. Whatever is done will he dangerous. Thousands of mortgagors need help; on the other hand anything in the nature of a moratorium will frighten investors away. Nor is there any reason, in principle fit any rate, why this special consideration of mortgages should be confined to the country, but if the legislation Is to apply to the whole of the community, fiow many such tribunals will be needed ? Parliament must consider this measure very carefully-, enacting safeguards against, various kinds of abuse of the proposed protection. It should also insist upon the State lending Departments being included in the scope of the tribunal. The Prime Minister thinks the .State Advances Department can ho safely left to deal with its own cases, hut the public prefers that all lenders should be placed on an equality in this respect, and if this is done the proposed legislation will command more confidence.
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Hokitika Guardian, 20 March 1931, Page 4
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517The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 20, 1031. HELP FOR MORTGAGORS. Hokitika Guardian, 20 March 1931, Page 4
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