MONEY AT CALL.

Taranaki Daily News, 30 March 1921, Page 5

MONEY AT CALL.

RECENT LEGISLATION. AMENDMENT TO MORTGAGES. EXTENSION ACT. SOME EXPLANATIONS. The following information has been supplied on the operation of the recent amendment of the Mortgages Extension Act, so far as it applies to money at call. The position was stated to be as follows: “Money lent on deposit does not differ in essential quality from money lent on mortgage. The fact that a mortgagee has specific security in addition to the contract for repayment does not constitute a distinction in the nature of the investment. In either case the ‘ lender has put out moneys which he did not immediately require, on loan at interest. “EVERY MORTGAGE OVERDUE.” “The extension of mortgages was first enacted at the outbreak of war inutile year 1'914, and has been continued ever since. By this time practically every mortgage is overdue, and ■ the principal money secured is as much at call as money bn deposit. Yet no one contends that extension of mortgages is unnecessary. Much hardship has been incurred by many mortgagees. For example, soldiers who sold their properties when enlisting, leaving the greater part of the purchase money on mortgage, have found on their return that ’they can neither recover their properties, nor receive their capital to enable them to start afresh. For such cases the law provides a tribunal, which at small expense to the applicant will do justice between the parties. Exactly the same principle is applicable to depositors. / DATE OF EXTENSION.

“But critics of the recent legislation seem to ignore the fact that the actual extension of the due date of deposits is only till May 31. Any further extension can only be obtained by notice given to the depositor by the public bodies or companies, or firms holding the deposits. It is very unlikely that public bodies or companies will give such notices to what are described by the critics as ‘small depositors,’ though it is fairly certain that depositors of large sums will receive notices requiring extension. If notices are given to really small depositors who require the money, those giving such notices will simply invite appeals to the tribunal—that is, to the judge —and may expect decisions adverse to themselves. The tribunal is directed by the Act to take every circumstance into consideration, and to determine according to justice and equity. In - cases where the principal sum is less than £5OO, a magistrate has jurisdiction. “Again it has .been assumed that the public bodies and companies are only required to pay tin additional one per cent, for the extension they demand. They are required to offer at least one pei cent., and if they offer no more than that minimum, the tribunal can be appealed to by the depositor for a higher rate. It may be assumed that if notices are given to small depositors a higher rate than the minimum will be offered.”