FINANCIAL DRIFT

Ashburton Guardian, Volume 60, Issue 36, 22 November 1939, Page 6

FINANCIAL DRIFT

THE. IMPORT RESTRICTIONS. NEED FOR REMEDIAL ACTION RESOLUTION BY IMPORTERS. (Per Press Association). WELLINGTON, This Day.

The following motion was carried at the annual meeting of the New Zealand Importers’ Federation y’ostorday: “The Federation, gravely concerned at the state of financial and commercial chaos into which the Dominion has drifted and is still further drifting at an accelerated pace, urged on the Government the imperative necessity of taking the loaders of political, financial and commercial life into its confidence and accepting their full co-oper-ation in devising means of meeting the present financial and commercial crises, to reinstate the credit of the Dominion overseas, and to place the country in the host possible position, and assist in the prosecution of the war. “The Federation finds, after two periods of drastic control of imports under the licensing system, that the re-, strictions are having a devastating effect on the commerce of. the Dominion. Unemployment among the staffs of distributors is rapidly increasing and the community is fast becoming intolerant of the shortago of commodities for domes tic requirements. The Federation considers the present favourable overseas market for our produce presents a unique opportunity’ of improving the unsatisfactory position of the London funds, which should he availed of to the. utmost,' by’ providing every’ means of increasing production. ' “That in the opinion of this meeting the trading banks, with their established overseas connections and experienced executives, are able to provide facilities for handling sterling exchange which are not available under the control of the Reserve Bank, and that consideration be given to restoring this medium of control at the earliest.”

In his presidential address, Mr G. W. Guthrie (Wellington) said it would have been more equitable if imports had been regulated in the form of a tariff. Any reduction in imports necessary to remedy the shortage in London funds should have been applied to all concerned. .He said that New Zealand was rapidly drifting toward financial chaos and only a substantial overseas loan would prevent a financial crisis from which it would take at least a decade to recover. He urged moderates in the Government Party to accept- the cooperation offered by r the Leader of the Opposition, so that the country could regain the confidence of the British Government and the investing public^