REFUSAL BY BANKS

Manawatu Standard, Volume LIX, Issue 160, 8 June 1939, Page 10

REFUSAL BY BANKS

SECOND PERIOD CREDITS. GOODS FROM OVERSEAS. Per Press Association. NEW PLYMOUTH, June 8. A flat refusal, in, the meantime, to provide funds for the purchase overseas of goods authorised by second period licenses in being made by the trading banks in New Zealand. This position was discovered to-day by two large importers, who stated that the effect was serious. The banks are not issuing credit for second period goods, despite ample licenses Held by the importers, they state. This means that payment cannot he made for goods already ordered and possibly ready for shipment and, as shippers are hot prepared to take the risk, credit is held up in New Zealand indefinitely, the goods not being forwarded. It is considered that some goods may already he on the water to arrive in the second period. In the past, tlie trading hanks have been providing credit, relative to the permits the Reserve Bank lias granted the trading hanks. It is believed that they have not been reimbursed for all the first period goods, so are not prepared to take the risk lor the second period unfil the position is clarified. It is understood that there is no differentiation between one trade and another, credit being issued to no one. Tlie fact that importing firms have amide funds in New Zealand makes no difference. They still cannot secure the finance they require overseas to take advantage of import lieenses. 'The suggestion was made in one quarter that the banks’ refusal would continue until Hen. AY. Nash had completed his mission in London and provided adequate sterling funds.