OVERSEAS SHARES

Hokitika Guardian, 16 July 1940, Page 6

OVERSEAS SHARES

LOANS NOT FAVOURED

(Per Ercss Association—Copyright).

WELLINGTON, July 14.

A suggestion advanced that holders of overseas securities should be permitted, under the Finance Emergency Regulations, to lend them to the Reserve Bank instead of having to transfer them was not supported by the Minister of Finance Mr W. Nash). ,to whom it was referred. The. Minister said that the suggestion would not give to the Government the overseas funds that were necessary, and New Zealand was adopting the same course as Britain and Australia in relation to the overseas securities which they need to provide dollar funds and similar currency. “The Government will take every precaution with any shares acquired by the Reserve Bank to avoid undue pressure ,on the market which might reduce the value of those shares,” Mr Nash said. object of the Government is to acquire foreign funds, and it has no intention of defeating that object by -accepting less than the shares are really worth. As a matter of fact, the objects of these regulations are the. same as those of the British Government, when it applied similar provisions to American securities held by British lesidents. “Uncontrolled action by individuals to realise their holdings in foreign markets may easily result in the acceptance of lower prices. On the other hand, the Government has the opportunity and power to market the shares, which, have to be sold iff an orderly fashion and so meet the market conditions.

“Negotiations are already being conducted between Mr D. G. Sullivan ana the Commonwealth authorities to make arrangements that will he acceptable to both Governments.”