IMPORT RESTRICTIONS

Greymouth Evening Star, 6 February 1939, Page 3

IMPORT RESTRICTIONS

BRITISH FIRMS’ ACTION".

[per press association.] DUNEDIN, February 5. An increase in the prices of general merchandise lines seems inevitable, following the decision of a. number of English mercantile firms to withdraw their previous exchange allowances to wholesale firms, because of the Government’s import restriction. Some firms have already cancelled this allowance. Explaining the situation to-day. the manager of a local mercantile, firm said that some British manufacturers had been extremely liberal. They had stood by the exchange rate, either wholly or in part, to a rate of 25 per cent. In this way they had kept costs down, and saved an increase in the prices of their goods. Each day restriction of imports was reflected in a withdrawal of exchange allowances. The Government’s import control scheme was the reason <br British firms taking this step.

The opinion was expressed that oilier firms would soon follow the leu.l of those who have already closed down on their exchange allowances. For some time past, they had stood the cost of exchange in a hope that, the percentage rate would be reduced. Some firms had placed money in the Dominion, while a few of the principal concerns had taken the opportunity to transfer capital to Great Britain.

PRESS REPORT CORRECTED. LONDON’. February 4. The “Daily Telegraph. - ’ on Mr. Jordan’s representations, corrects an erroneous piece of information published that the New Zealand Customs receipts for the first month under im port control fell to only £75.001'. The journal points out that the actual receipts were £730.000.