EXPORT BAN.

Auckland Star, Volume LXIX, Issue 209, 5 September 1938, Page 10

EXPORT BAN.

N.Z. CAPITAL

CREDIT FACILITIES.

SHARE TRANSACTIONS.

STRICT CONTROL ENFORCED

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON', this dav

Officially unannounced but, nevertheless, effective, there is strict control over

"edit facilities now being granted for overseas destinations by Sow Zealand hunk.. This appear* to he fully justified by the present holding* of sterling "a la in- s in London by the Reserve Hank and commercial bank-, and this low ngure cannot be expected to improve »nil early in the X cw Year, when wool will commence to be exported and other exports will be in full volume.

tapitnl cannot he exports from New Zealanrl to-day. Anyone who doubts this ran ti-nt thn position by endeavourng to miri-liHw a draft „„ Australia, the Lnitcd Kingdom and anv other country. Tlif nature of the ].n.i, ( w,.,l payment must he disclosed, and if it relates to the purchase of shires there is no likelihood of the draft being obtainable, unless under e.xc-eptiotial circumstance*. However, Imna tide trade transactions are not being restricted, there 1-ciiig no difficulty in securing over.-?is credits for this "purpose without limitation.

"There i* absolutely no interference with legitimate trading transactions." declared a prominent banker, who corroborated the information regarding the control over the export of capital.

He wa.« asked if it was pooeible, as reported, that a farmer who had sold his land had taken the proceeds in Reeerve Bcnk notes to .Sydney, and there opened an account. The reply was that it might have been done, but no Australian bank was bound to accept «uch a credit, as Xew Zealand Reserve Bank notes are not legal tender outside Xew Zealand.