STERLING FUNDS

Evening Post, Volume CXXVIII, Issue 136, 6 December 1939, Page 14

STERLING FUNDS

SPREAD PAYMENTS

MAY BE ACCELERATED

"Evening Post," December 6.

Realisations of Imperial Government purchases of New Zealand produce should soon begin to have their effect upon sterling funds in London, beginning with wool. Payment for wool will be made so far as New Zealand producers are concerned fourteen days on completion of the appraisements, but the wool on board ship represents an addition to the sterling funds. The same condition will apply to dairy produce shipped, and later to meat when it is going forward in the usual quantities.

' Already it has been noticed that the spreading of payments for imports for the January-June, 1940, period is becoming easier.

, Holders of licences to import when applying for funds in sterling must state the dates when such funds are required, but for the present they may not have to experience the difficulties of undue deferment of spread payments. There appears to be every likelihood in the present circumstances of completion of payments within the im•port period, with larger amounts than were expected being made available within that period. - But if pressure of the demand is made on the funds expected to be available early in the new year, then some proportion of the amounts applied for may have to be deferred. During the first half of 1940 it is expected that with the reduction of imports generally and the proceeds from exports—the value of which should exceed those for the first ?half of 1939 —being available, importers may find rather less difficulty than they have been experiencing in obtaining funds with which to meet their requirements. Under the . dairy produce guarantee scheme, the-Government was the sole purchaser of the butter and cheese, but the proceeds for that produce were not j available until it was sold, and although' payment was made to the pro- j ducers, advances had to be made by! the Reserve Bank for this purpose, and the Bank was not recouped until the produce was sold and the proceeds added to the sterling resources.