THE MORATORIUM.

Taranaki Daily News, 23 December 1921, Page 4

THE MORATORIUM.

The passing of the Mortgages and Deposits Extension Bill by both branches of the Legislature was a foregone conclusion. That it should be deemed necessary by the Government to extend the provisions of a measure which was originally part of the war legislation designed to preserve the interests of borrowers, plainly emphasises the unfavorable position of the money market. The Premier has asserted there will be no further extension of the Moratorium at. tlie expiry of the period provided for in the Act just passed. Time will show. There was no avoiding a further extension this session, and as provision is nu.de for the repayment of deposits by instalments at fixed dates, as well as interest at six and a half per cent., there should be a determined effort made to meet existing liabilities before the time of grace expires. It is a serious matter when capital is practically commandeered by Act of Parliament until such time as it pleases the Government to release it. That is use of the 'Moratorium. Lenders and depositors have been compelled to do without their capital, and it is not right that such a hardship should exist a moment longer than is absolutelv necessary to prevent financial chaos and disaster. If, as is to be hoped, the prices for our produce recover in the near future, and increased output is secured, there should lie no question of a further extension of this charitable measure, otherwise it is to be feared there will be a choice of evils resulting in the weak going to the wall, or being sheltered by protective legislation.