LIMIT REACHED.

Auckland Star, Volume LXX, Issue 140, 16 June 1939, Page 8

LIMIT REACHED.

BANKS' ASSISTANCE.

GOVERNMENT'S NEEDS

FINANCIAL RESOURCES

SERICUS TRADE POSITION

(I'.y Ti li>i;rn|ili Spprinl m • , Si.i:-."i WKLI.I\(.|( IN. thi, ,|.,\ . "Tin' tiii'linj! lunik- hii\r lion.' nil tli.il '•mi In- .1 « itliin i Iμ. limit- of tlu'ir I c-nlli ir- .111(1 tll(- l'\ i»l i f |<r —\-~ 1• ■ 111 t'i iiiniiitiiin tin- juililic .iii.l priviitf liii:iiii-i's of I !n< |)oininioii." -;iiil tin- i-luiiriiuiu of tin- ll.uik of New Zfrtliiiul. Mr. A. I". lionnilly. in hi- iiihlriwi to -li.i-.-1,. l.lers nt tin , iiMiiiiiil iiici'tins of tlio linnk in Wellington toihn . >uins \M-i-.. -uUsirilieil liv tile liiiiik- town ills the recent C 1..VH1.111M1 Inrtll i-micrl liy tlie (inviM'llllU'llt. stilted Mr. Donnelly, the nf New XimLuhl iilone iipplyiiiix for l'.'>oo.o(mi. New Z,;l- - (ioveililiienl securities hold liv the Hunk of Now Zealand at the end of t lie llmniciiil yr'iir iimoiiiited to £.1..T40,547.

Referring to the relationship rxWtitig between the bunk, mid the (»ovcrninent, he said: "It in the duty of tlie Government to manage the affair* of the country according to its policy. It is the duty of the bank, as the largest tiadiuj; bank in the Dominion, to help the Iliivernment whenever it can and a< much us it ciin." Discuasiom With Government. Continuing his (iddres-s to the -li.uc holders, Mr. Donnelly said: ".Ax you know, the (inverniiient i- i shareholder in the hank and lin- by l.i« the to jipp'iint a majority nf :ir directors on the Imard. There hnve b.'e;i oeca«ioiial discussions In t ween uiiir

executive officers, your <lirectors, and tile Minister of Finance during tlie term of the present (lovernnient. Such di-nis-sionn as there have been Imvc tiiKi'ii plnce in discharge of the duty which lie. f»n the liftlik to help tile (iovprniiivnt in the administration of that part of tiie financial system of the country wlii-li is covered by tin* lui«iiic>.- of tin , hank. \n\ discussions have always l.een in terms and there has not, nor could there ever he. «my discussion m disclosure of the business of any eii-tomcr of I lie brink unless cxprc«* prior authority liail been given to the Imnk hy the cll«to:ner. The secrecy mid the sacrcdiiess of (he •:■!.!-

lion lietv.eeu bunker ii n<l cut "liht U protected by I lie tradition of centu< i: ■■ mill I lie law of tlie land. In ;ill rr->|n'"!s the pre-ent (ioverument has kept Ihe liijih standard of propriety which h,i = always marked the relationship beivveeii the bunk and the iJovoniiiieiit of the diiy since IS!U, and the l.ii-ine--; of the bank is now conducted as it uhvuys hus on ill the pust. "Its capital, and your capital as shnrcliolders, and the moneys of depo-ii ■,;•* are e.s sh fe. as they have ever heen in the history of the bank." Effects of Trade Control. Discus,iipr the new jm -tern for the control of New ZvihuttV* exports, i;.,ports ninl exelmnpe, Mr, Donnelly said the purpose of the rejjuhl'ions rssued at tlie beginning of December l.i-i are to ensure that the proceeds from I he sale of Dominion produce overseas are received by the banks and lipid liy them on bcholf of the Reserve Bank, that imports arc controlled, and that the transfer of funds abroad for other than ) trade needs in subject to permits ti'uiii the Reserve Hank.

"Unfortunately tho London funds po»ition was such that the Government Iμd no alternative but to limit imports i i nn endeavour to conserve anil build up tin , country's London resource*.' , he s«iid. "It wm regrettable that this necessity should have led to restrictions which hftVe had. ntwl will have, ti very serious effect on the business of tin , country and on many nf those pniraged in the ini|>i>rt trade for their living, but it is not generally appreciated tliht the country list** been importing too heavily ;in<l tlmt traders have hud three years of unusual prosperity.

"Tho (foveriinicnt in applying its restriction* luia obviously aimed at the encouragement of local industry, a lid imported goods competing with locul manufactures have boon severely restrict ml. Naturally, luxury goods have bcpn cut, but the exigencies of the position have made it necessary to redner largely many classes of poods in common use. It is reasonable to assume that restrictions on these classes of goods will be modified as soon as the London funds position warrants."

Report* Adopted. The reports and accounts were adopted without discussion, Mr. A. K. Mahin, who was elected to the directorate dining the year, returned thanks. He stressed the strength of the bank from his knowledge from within, Mr. W. Morley moved a vote of thanks to the staff for services rendered during a trying time. .cth!-' \?Y!L "• Ch * lm er«, general man-