SHARE BUSINESS.

Manawatu Standard, Volume LX, Issue 264, 5 October 1940, Page 8

SHARE BUSINESS.

AUSTRALIAN ISSUES. MINISTER’S ATTITUDE. Per Press Association. ■WELLINGTON, Oct. 4. Payment of - calls on # Australian shares, the taking up of rights in Australian issues, and the transfer of credit balances from Australia were questions recently discussed with Hon- \V • Nash by a deputation representing the 1 nvestors’ Protection Association. A report of' the discussions lias been made available by the association. On the first question it was pointed, out in respect of Australian Consolidated Industries that, as the obligations had been entered into before tlie regulations were issued, it was only reasonable that lacilities should be made available to pay these calls, particularly in the ease of investors who had established funds in Australia for the purpose, it was also suggested that future dividends should be utilised to meet calls.

In reply, Mr Nash stated it was not possible to send remittances from New Zealand to meet calls, nor did he favour the using of dividends for this purpose, but he would take up with the Reserve Bank the questipn of applying portion of the credits of investors in Australia to meet calls.

In regard to the taking up of rights, it was urged that the sale of rights or disposal of portion of an old issue was uneconomic because, assuming the shares so sold could he replaced by other purchases in tho Dominion, double hrokerage would he involved. The deputation suggested that, in the ease of those with funds in Australia, sucli funds should be used for the purpose, because New Zealand would ultimately' benefit and, in any case, if the investors had other shares which they deemed advisable to sell the proceeds should be applied for the purpose.

Mr Nash was adamant about using current credit balances in Australia, but considered a case had been made out in respect to selling other Australian shares than the particular stock where rights had been issued to provide t'he necessary funds, and he promised to consult the Reserve Bank on this aspect. Mr Nash has since advised the association that in the case of New Zealand holders of Australian shares who also hold rights he is prepared to agree to such shareholders selling sufficient shares to take up the rights, even though such shares are not those of the actual company in respect of which the rights are to lie taken up. The Reserve Bank has been advised, accordingly, to regard the transfer of credit balances and deposits.

Mr Nash" said negotiations with the Commonwealth authorities were practically completed and shortly there would be no further trouble. The association is pleased to report that the Reserve Bank has now issued instructions to the trading banks giving the necessary permission to transfer funds as arrangements have been made for the release of these funds by the Commonwealth Government. The association adds that t'he impression gained from the interview was that sufficient cash reserves were available in Australia from current accounts or fixed deposits maturing to meet munition commitments in the Commonwealth for the next twelve months. “Then,” said Mr Nash, “we will make the first call on Commonwealth Government stocks, because these have appreciated since the outbreak of the war and there would not be any material sacrifice either to the holders or to the New Zealand Government.”