EXCHANGE POOL

Hokitika Guardian, 9 January 1932, Page 4

EXCHANGE POOL

GOVERNMENT ACTION RESENTED BY CHAMBER OF COMMERCE. (By Telegraph—Per Frets Association) CHRISTCHURCH, Jan. 8. An emphatic protest against the action of the Government in using the powers under the Export Licenses’ Order "to cover up the finacial difficulties of local bodies, by giving them preference of London exchange,’’ is contained j» a letter addressed to the Prime .Minister by the Canterbury Chamber of Commerce. Alarm is expressed that the Government intends to impound £14,000,000 of the exporters’ credits. The Chamber agrees that the Government interest, due on loans, must be met, ami it does no object to an arangement to this end, provided that it is only temporary; but it objects to the commandeer of credit to pay the local body interest. It also protests against the sum of £4,000,000 being taken to repay Treasury Bills. The letter says: “We consider it grossly unfair and unjust that the Government should so restrict the business and enterprise of the country, because it has failed lamentably in reducing its expenditure in accordance with the country’s ability to find means, and, so, has had recourse to this too easy method of finance.”

The Chamber risks whether the Government proposes to raise further loans of Treasury Bills, and asks also for some definite assurance that after the Government has taken its £14,-000-000, there will be sufficient funds available in London for the reasonable requirements of legitimate trade.