LEGACIES FROM ENGLAND

Press, Volume LXIX, Issue 21024, 28 November 1933, Page 12

LEGACIES FROM ENGLAND

THE EXCHANGE BATE "SUBSIDIES" NOT INTENDED It was reported in Christchurch yesterday that under the will of a relative in England a Christchurch resident is entitled to a legacy of £2OOO. According to cabled information received by him, however, he will not receive the benefit of the exchange when the amount is remitted to him from London, he states.

Legacies and other remittances from London to New Zealand not arising legitimately from trade do not receive the 25 per cent, premium from the exchange (the Parliamentary correspondent of "The Press" telegraphed last night). In most cases, in fact, even their transfer from London at par is prohibited. At the time of the passing of the Banks Indemnity Exchange Act an arrangement was made between the Government and the Associated Banks, under which the banks undertook not to transfer to New Zealand "outside" moneys; that is, moneys not arising from trade. The Government's attitude was that the exchange rate had been raised as an economic adjustment to benefit the farming industry, and not merely to subsidise legacies and other payments from abroad, which were not part of the Dominion's business. Although the arrangement was that such moneys should not be transferred at all, in practice each case has been considered on its merits. Capital which was being imported for productive undertakings, and even legacies, under special conditions, have been exempted from this arrangement, but the Government does not favour the payment of the exchange premium, for which it is ultimately responsible, on legacies transferred from England.