IN SUSPENSE.

Auckland Star, Volume LXX, Issue 201, 26 August 1939, Page 7

IN SUSPENSE.

AUCKLAND IMPORTERS

CREDITS AND LICENSES.

EARLY STATEMENT DESIRED

Prolonged suspense is ibeing experienced bv Auckland merchants owing to the Government's failure to make a clarifying statement regarding the use of the £4,000,000 special sterling trade credits arranged by the Minister of Finance, the Hon. W. Nash, in London. Although nearly four weeks have passed since the Minister left Eondon, and he is due to arrive at Auckland next Friday, no statement has yet been made by the Government to explain the procedure under which the total will be allocated to assist New Zealand's trade.

Another point on which merchants urgently desire information is in connection with the ii=sue of third period import licenses, covering the first half of 1940. Uncertainty lias been intensified a* a result of the extension of second-period licenses to enable merchants to spread shipments under such licenses up to the end of June next, and overlapping is one aspect of the problem. Using the £4,000,000. "If this suspense and uncertainty could be removed merchants would be much relieved," said .Mr. Hugh Thomson, president of the Auckland -Importers' Association, to-day. He .stated that brief cabled information was received from London la>t week to the effect that an exports credit* board would issue insurance policies to British exporters guaranteeing 7f> per cent of drafts drawn on New Zealand lirms, if unpaid within six months, but the New Zealand Government had given no information to the business community or to the public. The Government had not explained the procedure to be adopted in regard to the sum of £4.000,000, and merchants had no knowledge whether the amount was being already drawn upon or was to be made available gradually over the next six months. So far there had been no eases reported in which bills on New Zealand had been discounted under the special credits. Third Period Licenses. Referring to third period import licenses, Mr. Thomson said representations had been made by his association to the New Zealand Ini|>orters' Federation, and passed on to the Government, stressing the urgency of definite action. In reply the Comptroller of Customs had stated that an endeavour would be made to reach an early decision on the issue of licenses for the lirst six months of next year, but he was not in a position at present to advise when the licenses would be available. Splitting of Orders. The spreading of payments, under Reserve Bank control, for second period imports, had given rise to a new problem due to splitting of orders, he stated. This particularly concerned manufacturers dependent on supplies of materials from overseas. The trading banks were, however, assisting to meet, the position in cases where the acuteness of the problem was represented to them.

Inquiries in other quarters revealed that there was occasional difficulty when British firms were unwilling to •ship goods urgently required in New Zealand unless prompt payment was guaranteed. In such circumstances overdraft accommodation was required in London. A few instances were reported where this had been obtained. Repayment would be made as funds became available month by month under the Reserve Bank's rationing system. '"There is general appreciation in commercial circles of the co-operation of the banks," said a leading merchant. "'They appear to have done all in their power to assist us."