OVERSEAS CREDITS

Manawatu Standard, Volume LIX, Issue 162, 10 June 1939, Page 6

OVERSEAS CREDITS

SECOND LICENSE PERIOD. HANKS TAKE STOCK. Pit Press Associnlimi. AUCKLAND, June 9. Overseas credits I'or floods subject of licenses for the second period ol the .venr will not he ('ranted in the meantime, according to advices received from trading hanks h.v Auckland importers. Tlie situation was not altogether unforeseen hy importers, hut it is considered that it will not last lor any considerable period. .11 is pointed out that it is apparently intended hy the hanks to take stock of the position arising from commitments under the first period ot import licensing, which will not ho completed till I lie end of the month.

“One can hardly conceive of the situation lasting any length of time,’' saitl an importer, who instanced the situation in December last, when the issue of licenses was held up, apparently while stock was taken of tin* financial situation. Knuds overseas are heavier than at the beginning of the first period, the Reserve Hank's sterling funds increasing hy L'I.;lI8,01)1) during the last week, and it is thought hy importers that, in view of the failure of the Auslralion loan in London, hanks desire to liuild up a sterling reserve in order fiat Mr Nash’s plans for the conversion of C17,000,QU0 will he assisted.

RANKING STATKJIIAT

THE POSITION EXPLAINED. Per Press Association. WELLINGTON. June 8 That the holding of an import license, or even of a permit to remit, dues not, in itself, guarantee that the sterling funds will he available lias been emphasised previously hy the Reserve Hank, as well as hy the chairman ol (lie Associated Ranks. Regarding the permits issued hy it for the remittance of funds overseas, the Reserve Rank on May ,'il explained that the permits “merely constitute an authority to the various trailing batiks lo use for tlie purpose specified any funds which may lie available out of those received by them on behalf of tlie Reserve Haul,- from the proceeds of exports or otherwise. “If at any time, however, the trading hanks have not in hand a sufficient amount ol such overseas funds to meet all the demands being made on them in respect of import licenses and exchange permits it is incumbent on

them to ration these funds,, and in so doing it is natural' that consideration should lie given to tlie relative urgency of tlie various demands. including (he needs of tlie trade situation.

“It will he remembered that the rationing ol overseas funds has been necessitated on previous occasions during a temporary shortage of sterling

, resources. I “The position undoubtedly is eom- ' nlicnted and upsetting Lo certain paries,” said tlie chairman of the Assn•inted Hanks (Mr R. ('. Addison), in a l.atenient, “hut in the best interests d all I would urge forbearance all round. “I he (railing hanks are maintaining t very close touch with both the Reserve Rank and the Government, and by their co-operation with them are hopeful that a satisfactory solution will he loiinil. Ihe trading hanks are doing everything possible both in the i interests of their. customers and of Now Zealand us a whole. The holding ol a ‘permit to remit' or of an ‘import license’ does not in itself guarantee that the relative sterling I lunds will he available immediately.'’