FLIGHT OF FUNDS
POLICY OF BANKS SOME RESTRICTIONS NOTED It it admitted in banking and financial circles (states the Auckland "Herald”) that several of the trading banks are restricting the transfer from New Zealand to Australia of capital sums where conditions appear to warrant such action. An explanation given is that the financing of normal trading operations it not being interfered with in any way, but where a particular bank finds it inconvenient from its own point of view to accept such business, it may either refuse it or look for a higher rate by way of recompense. The chief cause of the position, it is stated, has been the steadily increasing adverse balance of trade between the two countries, but this position has undoubtedly been aggravated by a strong flight of capital. It has been previously disclosed that some of the big financial institutions, including insurance companies, have transferred large sums to Australia for investment purposes within the past year or sc.
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Nelson Evening Mail, Volume LXXII, 14 July 1938, Page 9
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163FLIGHT OF FUNDS Nelson Evening Mail, Volume LXXII, 14 July 1938, Page 9
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