ALLOCATIONS OF EXCHANGE

Press, Volume LXXXVIII, Issue 26886, 12 November 1952, Page 8

ALLOCATIONS OF EXCHANGE

£321,000,000 SOUGHT THIS YEAR

“NO ALTERNATIVE TO RESTRICTION ” (New Zealand Press Association) AUCKLAND, November 11. Applications for special allocations of overseas exchange fo’* the current year up to November 4. amounted to £209,000,000, said the Minister of Industries and Commerce (Mr J. T. Watts), in an address to the Auckland Chamber of Commerce today. This was on top of the total basic allocation of £112,000,000 which importers and manufacturers had already been allowed by the Reserve Bank. The total of £321,000,000 sought this year had been asked for by 7114 persons, the Minister said. While the demand for exchange continued at this level, inflationary pressures were still m existence, and trade would continue to be difficult. Overseas prices were very uneven, and there was no alternative but for the Reserve Bank acting on behalf of the Government, to continue tn exercise some method of restriction.

“I hear there is a litt 1 - dealing in exchange.’’ said the Minister, “fi is bad. and it should not happen, but there is always someone who will not play the game according to the rules ” Discussing next year’s exchange allocations, Mr Watts said the Reserve Bank had estimated that the basic amount (40 per cent, of the 1950 figure) would be £56.000,000. Up to November 4, applications for excess allocations had amounted tn £ 138,000,000. The applications had E°^ e .J rom J 5OO Persons—fewer than half the number expected—and at that rate it looked as if the total for the £3 a o r o,oo0 O ooo d agai ” be m ° re than

. You cannot tell me that business is bad, and that prospects are bad when you are asking for overseas exchange W tt”™ 1 Vear at that rate ’” said Mr

The Minister said that nobody knew how much exchange would be available for next year. better tone of the S° o 1 sale °n Monday, he continued at somewhat better levels than the conservative estimates of the economists, there ai?ocate be 3 httle m ° re exchan ge to

Mr Watts said after the meeting that a ’ mount of exchange allocated to traders this year by the Reserve Bank was £200.000.000. Up to the end of September £165,000,000 had been spent. About £30,000,000 had been a^tocatton 1 ” the reserves to meet the