THE BLACK MARKET.

Auckland Star, Volume LXX, Issue 164, 14 July 1939, Page 6

THE BLACK MARKET.

It was fairly obvious, even to the casual observer, that the import selection system could Hot function side by side with a free market for importers who could, at a sacrifice, make their own financial arrangements for any class of goods they desired to land. To a known and limited extent that was permitted under the licensing system, spirits and some classes of tobacco, for example, but the whole system would not operate effectively if the black exchange market were permitted to expand as it has during the past few weeks. For good or ill the Government is committed to that system, partly for the avowed object of helping the local manufacturer, and only by refusing licenses to goods payment for which does not go through the ordinary channels of trade can a check be kept on the import range. In addition to that is the fact that by the system of buying exchange through sources other than the banks delayed liabilities will be piled up to an extent which may make a very formidable obstacle to the return to normal trading conditions when and if that becomes possible.