EXCHANGE CONTROL.

Auckland Star, Volume LXII, Issue 306, 28 December 1931, Page 8

EXCHANGE CONTROL.

EFFECT ON IMPORTERS. "NOT MUCH DIFFERENCE." FUTURE DANGER SEEN. Representatives of prominent Auckland firms of importers, -when interviewed, agreed that, as importations at present are so restricted, there is little likelihood at the moment' of the new exchange control operating harshly against importers. "Imports," said one authority, "are right down to a minimum, and I don't think there is any possibility of their increasing -within the next period, and therefore under the Government's proposal there will not be any difficulty from the importers' point of view. However, should there be a revival in trade, importers will be considerably inconvenienced, because under the scheme they

would be prevented possibly from buying on the most favourable terms. An importer at this end might have £100,000 available for remittance to London, but, the Government having taken the available funds, it would mean that the importer could not have that money to take advantage of the best buying terms. In those circumstances there would no doubt be a further restriction in imports, and an adjustment would be necessary of the financial arrangements connected with Home buying. The danger is that best-term buying would be prevented through the banks not being able to release the funds, although ample finance was available at the New Zealand end."

"I cannot see how the move will affect importers, unless there is to be further action, independent of this, to restrict importations," said the representative of another large firm. It looks as though the Government is out to stabilise exchange, and to stop a leakage of some of the money that is re-ceived-for our exports." He agreed that it would be difficult to curtail imports further. Under the Government's proposal importers would certainly know where they stood.