DOLLAR EXPORT INCENTIVES

Press, Volume LXXXVIII, Issue 26869, 23 October 1952, Page 13

DOLLAR EXPORT INCENTIVES

STUDY OF I.M.F. COMMENDED The decision of the governors of the International Monetary Fund to call for a special study of the dollar export bonus systems is wen advised, says the "Financial Times." For several years past the Netherlands and certain other countries have bpen. operating systems intended to stimulate sales to doHar countries by allowing exporters to retain part of the proceeds of such business for disposal at special rates of With the re-emergence of the world dollar shortage during the last year, other countries have resorted to similar practices for the purpose of extricating themselVes from mounting hard currency difficulties. The success of their efforts has, in turn, forced other countries to induge in the same kind of activity for defensive purposes. The faciHties available under the numerous schemes now operating are so extensive that they not only make it possible for the manufacturers of the countries operating them to take dollar markets away from their competitors. They have also frequently enabled their merchants to purchase the products of competitor countries for resale on dollar markets at lower prices than would obtain if the goods were shipped direct. The “Financial Times" says the dollar export bonus system is essentially a form of competitive currency depreciation. The Fund’s study should, therefore, serve a useful purpose both for the countries that have ben indulging in dollar export premium systems and for those who have been suffering from the effects of such practices on the part of neighbouring States. In the past, unfortunately, much of the Fund’s work in the field of exchange discipline has suffered from lack of realism. “It is encouraging to note, therefore, that in this cgse the instruction to the Fund’s staff to carry out an inquiry has been accompanied by the advice that such an inquiry should proceed on realistic lines.” DRAINAGE BOARD 4 PER CENT. LOAN NEARLY £39,000 RECEIVED ON FIRST DAY Nearly £39,000 in cash and promises was received by the Christchurch Drainage Board, when applications for 4 per cent, debentures in the board’s £250,000 issue opened yesterday. This response, said the secretary, Mr R. R. Senior, was very satisfactory for thi first day. Investors may specify the maturity date desired, up to and including 1967. A schedule of redemptions for the 30 halfyear periods up»to October, 1967, lists the totals to be redeemed at each date. The sum of £169.100 is to be redeemed on the last date and the rest of the loan will be redeemed in parcels of £2OOO to £3700 at six-monthly intervals. The New Brighton sewerage loan, 1947, and the sewerage loan, No. 1, will receive the proceeds of the issue. The sum of £50,000 is required to provide the sewerage system for the suburb of New Brighton, and the remainder of the issue will be used to finance further extensions to the Christchurch metropolitan area’s sewerage system.