THE CALL MORATORIUM.

Taranaki Daily News, 31 March 1921, Page 8

THE CALL MORATORIUM.

PERTURBED DEPOSITORS. UNABLE TO MEET OBLIGATIONS./ The sudden embargo imposed on tKe withdrawal of deposits at call held by firms and public bodies is still the main topic of conversation in business circles, says the Christchurch Sun. tion prevails in the minds of many depositors liable to be embarrassed if repayment of their money is not/made at an early date. Some firms /ave no desire to take advantage .of tho now law, but the last word on thf 1 subject rests with their bankers, who IJave now been placed in a very strong/position at the of the unfortunate depositors. ’ An instance has come notice where agents for an absentee? effected realisation, and pending transmfision of the money abroad placed it on/deposit. It appears that they will have to find the money themselves to keep fsth with their principals. i In another instance a man (pposiied £4OOO with a firm thinking 1£ would have it available in a few days to pay off a mortgage. Now he is satfler and wiser, but tlie most serious yet disclosed affects an important lonl authority, which placed a large running into many thousands of on deposit with another local aupority. The former will require the monjy in a week to pay interest on its debptures. The borrowing authority is heavily overdrawn at its bankers, yet if ye latter does not allow it to repay >e deposit, the lender will find it diffi®lt to keep faith with its debenture holers.