OVERSEAS CREDITS FOR IMPORTS

Nelson Evening Mail, Volume LXXIII, 10 June 1939, Page 2

OVERSEAS CREDITS FOR IMPORTS

RESTRICTION IS FOR SHORT TIME ONLY BELIEF IN AUCKLAND BANKS TAKING STOCK I United Pre«B Association) AUCKLAND, 9th June. Overseas credits for goods subject of licences for the second period of the year will not be granted in the meantime, according to advices received from trading banks by Auckland importers. The situation was not altogether unforseen by importers, but it is considered that it will not last for any considerable period. It is pointed out that it is apparently intended by the banks to take stock of the position arising from commitments under the first period of import licensing, which will not be completed till the end of the month. “One can hardly conceive of the situation lasting any length of time,” said an importer, who instanced the situation in December last, when the issue of licences was held up, apparently while stock was taken of the financial situation. Funds overseas are heavier than at the beginning of the first period, the Reserve Bank’s sterling funds increasing by £1,318,000 during the last week, and it is thought by importers that, in view of the failure of the Australian loan in London, banks desire to build up a sterling reserve in order that Mr Nash’s plans for the conversion of £17,000,000 will be assisted.