N.Z. Finance Rumours

Northern Advocate, 14 July 1938, Page 7

N.Z. Finance Rumours

(Received 8.30 a.m.)

LONDON, July 13,

Fresh rumours detrimental to New Zealand are circulating in the city. A statement by the manager of a New Zealand branch bank that applications for exchange involving large transactions would not be encouraged, as the bank was anxious to preserve its London funds, led to reports that an embargo on remittances from New Zealand was contemplated. The “Financial News” states that trading concerns consider it certain that the New Zealand banks are attempting to exercise a form of unofficial control of exchange transactions to prevent the flight of capital abroad.

New Zealand bonds have been affected by the rumours. An Auckland telegram says, in regard to the above cable, that inquiries in responsible quarters show that the position appears to be that ordinary business transactions for business purposes are being fully met, but, as to capital transactions, although there is no actual embargo, it is necessary to conserve London funds for trade requirements. Applications are considered on their particular merit, each bank taking such action as it thinks suitable. ■