FINANCIAL CONTROL

Hokitika Guardian, 9 January 1932, Page 7

FINANCIAL CONTROL

DIVERTED FUNDS.

LARGE SUMS SENT TO AUSTRALIA.

WELLINGTON, January 7

Rap resentatives of the larger business concerns in Wellington conducting both export and importing trading have been securing authoritative information from bankers and Government officials which leads them, it is understood, to believe that control over overseas exchanges will not result in undue hammering of normal business activities.

Estimates made of the financial requirements to meet Government and i'oeal body overseas obligations during the year show: that unless there is a very large extension of overseas ordering no difficulty will be experienced in meeting all needs for overseas expenditure.

There is no doubt that when New Zealand credits require to be expended outside the Dominion there will be some scrutiny as to tile nature of the expenditure, but for goods ordinarily needed to maintain the country’s business no difficulty will arise unless there is excessive ordering, nor is it likely that moderate expenditure by New Zealanders touring overseas will be limited. DIVERSION OF CREDITS.

The real' reason actuating control over exchange appears to be that very large profits have been made on New Zealand credits abroad by diverting them to other countries. As an example, if a holder of funds obtained from the realisation of New Zealand products in England was in a position to divert them either to Australia or New Zealand there would be a big financial advantage in placing these funds in the Commonwealth. Large operations of this character are reported to have taken place. However, the Government’s control measures will ensure that New Zealand's money will be at New Zealand’s disposal.