The Grey River Argus TUESDAY, March 20, 1945. N.Z. CREDITS AT LONDON

Grey River Argus, 20 March 1945, Page 4

The Grey River Argus TUESDAY, March 20, 1945. N.Z. CREDITS AT LONDON

Tiie fact that the Dominion’s exchange position is so much sounder than before the war is quoted by certain importing interests as a justification for ‘Criticism of tiie. Government’s policy. It is said, in effect, that credits haVe in London been built up at tiie expense of Dominion traders and consumers. Evidently the chief use these people would have for an accumulation of sterling funds, even at the present critical time, is to facilitate the importation of goods. Obviously the accumulation is more essential now for financing war, or Governmental, as distinct from individual transactions. Loans from, time to time fall due for conversion, and"Avar supplies have to be financed. Those importing interests which have all along been opposed to regulation are prone at short intervals to declare that the country is put to unjustifiable sacrifice in view of is accumulation of credit overseas. Thus, XeAV Zealand, according to the latest Reserve Bank figures, has sterling exchange in London ex-

(•ceding forty-seven and a quarter millions. This represents an increase since the start of the Avar of about forty millions. It is a convincing testimony to the fact that import regulation has fostered the national credit externally. There also arc many other facts, including the. freedom of our population generally from indigency, which go also to demonstrate that control has fosterml our our industrial production. However, as against the advantages represented by the increase in these credits a London, Auckland importers hold up as a criticism the fact that the Government has not issued permits for the importation of Canadian tinned fish ! Exporters of sardines, have there made offers of consignments, and because of this the Government was to have been expected to dedicate some of its London credits for this purpose, there are a whole lot of things needed far more in New Zealand than imported sardines, which the complaining importers laud as something marvellous in the way of foodstuffs. Fruit is one thing much more important and it may possibly be yet necessary to import a quantity of wheat, whjch Canada could' supply, and which the Government will undoubtedly secure if it j s a necessity. A previous instance quoted as against import control was that of mouse-traps I. Meantime it is suggested that the Government

simply keeps forty millions of money? idle .overseas; whereas, when the reserve did lessen before the Avar, the Government’s critics were then as caustic in their complaints of extravagance as .they now are of parsimony. The Dominion lias been able during the war to convert loans in a very satisfactory way, effecting an economy which goes to represent a return from the reserves. Nobody -can foresee the demands which the ensuing critical -few years are certain to make on such. London assets as these. They meantime arc not being missed here any more than are Canadian sardines. No doubt, the importers would say they do not base their case merely on tinned lisli ‘or mouse-traps, but that there are hundreds or thousands of classes of other goods which, were they imported, wduld sell like hot cakes at a good fat margin of profit for the traders. Their point is that a couple of years after everybody except themselves, had forgotten all about Canadian sardines, a quantity was offered, and importers could not embrace the opportunity for a profitable deal. 'Presumably many other lines of goods are obtainable if only the Government would sanction their importation. The public however will doubtless feel in the main, that the Government has a good and sufficient reason for maintaining as strong a financial position in London during the war as the critics used to declare it should have done before the war, A\)hen the state’s external icommitments were so much less. There is reason to think that it, is not so much any regret that sardines are not to hand AvhereAvith to tickle the public palate, as it is an objection to the very principe of import control Avhich renders the London credits so obnoxious to the importers.