Manawatu Evening Standard. (Ebtning Stait&arfc. TUESDAY, JULY 14, 1936. EXCHANGE CONTROL.

Manawatu Standard, Volume LVI, Issue 200, 14 July 1936, Page 6

Manawatu Evening Standard. (Ebtning Stait&arfc. TUESDAY, JULY 14, 1936. EXCHANGE CONTROL.

[n Germany, stringent exchange control is in operation, supervised by twenty-five control boards. Each board controls a separate category of requirements and regulates imports, and the internal distribution of all foreign commodities within its own category. Provision is made for correlation between separate boards where die nature of an important transaction so demands. German importers must make application in respect of every individual transaction. After an application is approved, an exchange certificate is issued which, when presented together with a certificate of import from the Customs authorities, enables the beneficiary to effect payment in foreign ex change. In the allotment of exchange certificates especial value is attached to facilitating the provision of raw and semi-raw materials for the German export industries. The export of Reichsmark notes and gold coin is prohibited. The amount of foreign currency which may be exported against entry in a valid passport without a special permit is restricted to the equivalent of ten Reichsmarks per capita monthly.

The conditions are just as severe in Italy. A strict exchange and import control is administered by the National Institute tor Foreign Exchange. All foreign currency must be declared and sold to the institute through an authorised bank. The production of Customs clearance documents is a prerequisite for the allotment of foreign exchange. Italian law provides that payment iii lire constitutes a valid discharge of any debt, irrespective of the currency in which the debt is expressed, unless the relative contract stipulates payment in effective foreign currency. As from November 1, 1935, travellers leaving Italy must obtain from the frontier authorities a certificate showing the amount and description of any Italian notes in their possession at the time of exit from the country. This certificate may then be utilised to facilitate the negotiation of the notes to banks abroad. The amount per capita which may be exported at any one time is restricted to 201)0 lire, and the largest denomination to 100 lire. There are numerous restrictions consequent upon sanctions, and it is well-known that Italy’s foreign trade has suffered very severely—so severely that it will take many years of peace to recover. Almost every European country and many outside of Europe administer exchange control systems, and it is marvellous that under such circumstances international trade can operate at all. Last year it was reported that there was an improvement in world trade, but this was mainly due to the sterling bloc, where there is a great measure of exchange stability.