HOPES RAISED.

Auckland Star, Volume LXX, Issue 301, 21 December 1939, Page 9

HOPES RAISED.

AUCKLAND IMPORTERS

ALLOCATION OF LICENSES.

MORE FUNDS AVAILABLE. Importers' hopes have been raised by the Reserve Bank weekly statement issued yesterday in Wellington, which shows that the holding of sterling funds has risen by more than £2,000,000 in the week, and has readied the highest level since import restriction was first introduced. Already it has been indicated that the licenses for imports in the first six months of next year will be issued on a more generous scale than this year, as larger payments being made for exports to the United Kingdom have already gone a certain distance towards restoring the Donri-

nion's overseas balances. Taking this into consideration, special significance is attached to a statement received by the Auckland Chamber of Commerce from the Minister of Customs, the Hon. W. Nash; the Minister stated that in determining the amount to be allowed for importations in the third licensing period, account was taken of the overseas funds estimated to accrue in that period. This was a reply to a suggestion from the chamber that an additional amount of sterling credits should be allocated in view of the increases in realisations from the sale of the Dominion's primary produce.

Mr. Nash added that, should it be found that a greater amount was available than was estimated by the Government, full consideration would be given to the question of applying such amount to providing for additional imports of essential commodities, particularly from the United Kingdom. Bank's Sterling Holdings. The movement of sterling funds since import control was first introduced is shown in the following table, which compares- totals given in Reserve Bank statements issued about this date in each month during the second half of this year with the equivalent totals for last year:—

1039. 1 !>3!). £ £ J", f.,7!>3,1H5 July 15,812,9-15 5,580 074 August 14,ii0f;,111 5,453 SOS September . . J47,(KH! 5,L'00,372 October 8,313,575 5 54 .Via November ... 5,020,137 5 543 770 December .. . 4,308,005 8,L'73,'05« These figures show that the declining trend of hist year has been directly reversed, and that the Reserve Banks sterling funds have been almost doubled in the 12 months. Overseas funds held by trading banks have also shown considerable improvement in the same period. The latest returns for October 30, issued before the sale of new season's produce exported had given their seasonal lift, showed an increase of nearly £1,300,000 on last December's total.