EXCHANGE CONTROL

Grey River Argus, 14 December 1938, Page 7

EXCHANGE CONTROL

SENDING FUNDS OVERSEAS Procedure Outlined / [Per Press Association.] WELLINGTON, December 13. The procedure to be followed by persons wishing to remit funds overseas for travelling purposes, or for other purposes not involving the importation of goods, was outlined by Hon. W. Nash (Minister of Finance). Permits, for which application must be made at a trading bank, and which normally must be applied for a montn ahead, are to be issued, and, on the authority of the Treasury, the bank' will make approved funds available. I

“Generally all reasonable and legitimate requirements other than the capital transfer of money overseas by New Zealand residents will be met,” said the Minister, “and the permit system as is being introduced will, I think, assist- people by providing a definite channel through which, with the minimum trouble, they can obtain a definite assurance that a given amount of overseas credits will be made available to them on-a given date.” Mr Nash stated that the steps being

1 taken to conserve exchange were to. ensure that funds would be available to meet commitments at the latter end of next year. The normal building up of sterling by the sale of exports.) together with available sterling, would be more than’ sufficient to meet the requirements of traders and other im-j porters during the next few months. I Over-importation, particularly during the past year, rendered some regula L | tion necessary to ensure that it did otl extend through next year, and that' the funds required during the latter months of 1939, would be available. Conservation of funds was necessary, not only to meet debt and other services, but also to assure importers that their overseas requirements for essential imports would be available. “In general,” said the Minister, “importers will experience no difficulty in

? ootaming tne overseas crecuis neces- . sary to meet all documents for orders , for normal requirements placed on or , before December 5. Trading banks 5 will be provided with all funds neces- ; sary to satisfy the demands of their , clients in this respect, in addition to : funds for imports as stated.” i The Minister said that cheques drawn on New Zealand trading banks, i which were sent overseas on or before December 5, would be met provided that they were sent in the ordinary way of business to cover trading trans- ) actions or other legitimate needs of normal character. “Sterling or other overseas furids necessarily required for travelling expenses overseas by travellers from New Zealand, reasonable remittances to relatives overseas for maintenance or personal expenses, and other remit-, tances overseas not involving the im- ( portation of goods, will be made available under permit,” said Mr Nash. “Application forms are now; being printed, and will be distributed to the various branches of the banks within 1 a couple of days. Anyone going abroaL or desirous of making such ’ remit-j tances overseas should call at the branch of the bank normally used by I him, or if he has no bank, at any] branch of any bank. At the bank he will be asked to fill in a single form of application for a permit, which the bank will forward to the Treasury. Permits for approved amounts will be sent to the branch of the bank through which the application is made, and that bank will thereby be authorised to make the relative amount of overseas funds available to the applicant. Except in cases of special urgency, these applications should be made at least one month prior to the date upon which the funds are required. The reasonable requirements' of tourists and travellers for persons! | expenses will be provided. Permits for the payment of interest and dividends and similar payments to persons] ordinarily domiciled abroad, will ue i available as required. The transfer; of capital on account of legacies and for persons leaving for residence] abroad, will generally be but a special arrangement may be necessary where large sums are m volved.”

AUCKLAND, December 12. “Many Australians I have niet recently have told me that they regarded the pains being suffered by New Zealand as characteristic of Labour administrations, and that the same sort of thing happened Wuiei? the Lang Government was in power Like measles, they said, it was something the country had to experience; but from which it should soon recover,” said Mr J. A. C. Allum on hi s return by the Mariposa from Sydney. Very little information was to be had in Australia, he said, about the State control of imports into New Zealand. There seemed little doubt ampng the Australians he met that the Dominion was likely to be hurt.by the Government’s policy, Mr Allum added. -The general impression was that New Zealand had lived, and was living, beyond its income, and that the country’s credit in the Commonwealth was not as good as it had been. “People said to me, ‘A lot of money will be lost by the business community while the Government tinkers with trade,” My Allum continued, “They seemed to think we had a difficult task ahead of us; nut m most instances they believed the country would recover a new administration was elected They invariably quoted then experience nt_tln< hands of the Labour Government in New South Wales.” Mr Allum said that the so-called plan mentioned by the Primo Minister really gave no indication of its scope, although it seemed to be similar to measures adopted by zc few bankrupt European and South American States. New Zealanders who visited Sydney recently tried vninly to discover exactly what the Government’? imports restriction plan really involved. The Trade Commissioner’s office .»had no more information than what was contained in the somewhat fragmentary cable information Which appeared in the Sydney newspapers. Mr David L. Nathan; who also returned by the Mariposa, aften an elght-months' trip round the world, said the onlv comment he would make was that a well-known guest establishment in Sydney where h“ stayed refused to cash New Zealand cheques or banknotes. Luckily, *he added, he had a London bank cheque book, which he was able to use. ( WELILNGTON, December 12. ‘ Complaints by New Zealanders re-

turning from Australia that New Zealand ‘banknotes were not acceptable in Sydney were criticised by the Prime Minister (the Rt. Hon.\ M. J Savage) in an interview this evening. He said n 0 intelligent person would go out of the Dominion and expect New Zealand banknotes to b P circulating in an overseas country. “Whoever saw Australian notes or those of any other overseas country circulating in New Zealand?” asked Mr Savage. “These statements are made by New Zealanders trying to damn their country because Labour is in power. No intelligent person would go to Australia with a pocket ful of New Zealand banknotes, and expect them to be accepted. Of course they won’t be accepted, for New Zealand currency does not circulate in Australia, and it is difficult to imagine that anyone should ask that they he accepted. “I should think that anyone finding it necessary to visit Australia would take the proper course, and avail themselves of the facilities offered by the New Zealand and Australian banking systems. While these people are trying to damn the Government, trade in their own country is booming.”

WELLINGTON, December 12.

Referring to orders placed before December 5 and to goods received from overseas before December 31, the Minister for Finance (the Hon. W. Nash) said to-day that the trading banks, without a licence,, would provide al! the funds necessary to meet the documents on arrival'. Funds to meet documents for goods ordered on or before December 5, dispatched from overseas ports on or before December 31, which reach • the Dominion after December 31, would be provided, on presentation, of a licence issued by the Collector ‘of Customs at the time of the importation of the goods. Funds for goods ordered subsequent to December 5 would only be provided on presentation of a licence obtained from the Customs Department.

AUCKLAND, December 12. New Zealand bank notes arid cheques ate not acceptable in Sydney, according to passengers arriving by the Mariposa. They. said that the trade control plan had caused embarrassment to New Zealand travel* lers. - * ' , ~ , Cases were quoted of friends having to borrow money to meet their requirements in .Sydney as the banks would not take New Zealand notes ... Mr E. D. Walker, passenger manager in Sydney of the Matson Lino, who was a passenger, said his line had accepted New"Zealand' currency. The position, doubtless, would be cleared up shortly.