N.Z. CURRENCY

King Country Chronicle, Volume XXXIII, Issue 4801, 23 June 1939, Page 6

N.Z. CURRENCY

COMPLETELY UNACCEPTABLE IN AUSTRALIA. PREVENTION OF “SMUGGLING.” Neither the Bank of New Zealand nor any other bank in Melbourne will accept New Zealand coinage since the imposition of the drastic currency restrictions by the Dominion in December last, says the Melbourne Argus of May 31.

In some cases where Australian travellers, having returned from the Dominion, have a bank note or so in their pockets, they are able to exchange them with Thomas Cook and Son or the New Zealand Government Tourist Bureau at a discount varying from 5 per cent, to 10 per cent. This is done, however, only to oblige tourists, and not with any intention of assisting people to bring currency from the Dominion and so defeat the spirit of the legislation.

It is explained in Melbourne that unless every loophole for the transfer of funds is closed a considerable sum of money could continue to be “smuggled” out of the Dominion by persons intent on evading the regulations.

If the banks were to accept New Zealand notes in comparatively small sums, say, up to £5, individuals would be able to effect considerable transfer of capital over a relatively short period. The only way in which funds can be obtained outside N.Z. without the necessity for obtaining a license from the Reserve Bank is by the buying of Australian securities on the New Zealand market and selling them in Australia. The person making the transfer suffers loss to the extent of the difference in share prices.