THE MORATORIUM.

Manawatu Herald, Volume XL, Issue 1920, 28 December 1918, Page 3

THE MORATORIUM.

QUESTION OF ITS REMOVAL,

The removal of the restrictions imposed by 1 fie Mortgages Extension AH, Thl-I, appears, from inquiries made (stales the New Zealand Herald), to he desired generally by business men. Those who suggest this argue that Hie AH is purely a war measure, and that to allow it to remain in force any longer than is absolutely necessary will give borrowers unfair advantages. “I see no reason why mortgagors should not be given, say, six months’ notice of the Government’s intention to remove the restrictions of the, AH,” said one local authority on finance. “That would give the people affected ample lime to make their arrangements. I don’t see why (here should lie any fear that the calling in of these mortgages would have any serious 'effect’ on (he money market, for from what I know of the financial position in New Zealand, 1 feel certain that there is ample money to meet any fresh demands. One factor that wi!', keep (lie money market steady is the indemnity which we seem certain to secure from Germany. That is the key to the financial position of the Dominion for years to come, for by that means we will be able to recover the amount expended on the war. Supposing this indemnity, which Germany is well able to pay, is spread over a period of fifty years, we will be receiving an amount as interest and sinking fund that will entirely alter the conditions of our finances. For instance, on an indemnity of ,<175,1100,000, we would be receiving possibly .C'l/intl,000 annually, which would mean; that instead of the people of the country having to pay income taxes, Germany would be bearing the burden. It certainly seems to me that no harm can result from the removed of the moratorium. It would do no injustice and would have no harmful effect on the local money market.''