TOO MUCH CREDIT.
DOMINION’S MORTGAGES. “The experience of the past 18 months has shown us that this country is struggling under an enormous amount or loan money, that financing has been altoget'her flexible and that credit has been given to an almost unlimited extent,” said Mr. J. T. Martin, president of the Wellington Chamber of Commerce. “It would appear as if merchants, bankers, stock and station agents, financiers, and others who have been working away quietly each in his own domain for the post, 12 puzzling over the effects of the fall in prices of our produce and why m so short a period so many should lose the fruits of years of industry, suddenly awakened to the fact that it was largely attributable to our system of financing on small margins. In 1914, the total amount outstanding m mortgages in New Zealand was £106,44-2,297, and in March of this year rt had reached the enormous total of £229,805,724, and in the last 11 months alone we registered £32,531,566 and dis charged only £12,328,987, in other words increased our mortgages by £20,202,579. “In Victoria in the year 1920 they registered in mortgages £13,329,379, and released £14,697,097. In the United States a census of farm property in 1920 shows out of 3,535,631 farms, that 2,074,325 are free from mortgages, that land and buildings valued at 13,775,500,013 aollars only carry 4,003,767,892 dollars in mortgages. There is probably no country in the world where farmers, station owners, and others have been able to finance large undertakings on so little paid-up capital as in New Zealand. But this reckless financing come to an end, and in future mercantile companies and financiers will exact a greater margin of security on advances than ever they have done in the past,”
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Taranaki Daily News, 10 May 1922, Page 7
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294TOO MUCH CREDIT. Taranaki Daily News, 10 May 1922, Page 7
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