FROZEN ASSETS

Grey River Argus, 17 April 1940, Page 5

FROZEN ASSETS

OVERSEAS SHARES DILEMMA OF N.Z. HOLDERS AUCKLAND, April 16. Holdings of overseas shares by New Zealanders have become frozen assets for the time being. For days in succession there were no dealings in this class of investment on the New Zealand Stock Exchanges, as sales are not permissible, even between residents of the Dominion, of scrip already held here. This is the outcome of the Finance Emergency Regulations. The immediate effect of the measure, which is designed to conserve the financial strength of the country during the war, was a withdrawal on the Stock Exchanges of all quotations of the shares and securities of overseas companies. The onlj) exceptions were the shares of National Bank of New Zealand and those of Taranaki Oil Developments. Both of these concerns have had their head offices overseas but quotation has been allowed. Dealings in overseas shares, particularly those of the great Australian industrial concerns, have played an important part in the building of the Stock Exchange to the Substantial institution it is, in addition to providing the Dominion With a valuable share of the earnings of Australian industry. Overseas scrip, purchased in the normal course of investment, is so widely held throughout the Dominion that brokers feel that a fuller explanation of the objects of the regulations as they affect share dealings is needed. The market has expressed the opinion that they are too drastic, and, apart from the interference with business, are likely to inflict hardship. Meetings of the Stock Exchanges have been held in the various centres, and representations are being made to have the regulations eased. It is considered that this could easily be done without making them any less effective in protecting the country’s financial strength. Financial circles state that the regulations are much more stringent than the financial control measures brought down by the Commonwealth Government. In Australia, everything was done to preserve the existing credit, and while the export of scrip is rigorously controlled, no difficulties are placed in the way of domestic dealings in sterling securities situated in sterling countries.