MONEY FOR IMPORTED GOODS

Nelson Evening Mail, Volume LXXIII, 12 June 1939, Page 2

MONEY FOR IMPORTED GOODS

ACCUMULATING IN NEW ZEALAND

“IRRITATION AND WORRY” I United Press Asso:«atmnl AUCKLAND, 10th June. Under the rigid control now being exercised by trading banks over transfers of funds from New Zealand to ! I ondon and elsewhere, considerable ! sums in payment for imported goods . arc accumulating in the Dominion, according to information given by Auckland merchants to-day. They stated that transfers on a severely restricted scale were still being

made, but these were confined to a limited number of importers and to the needs of travellers and those with remittances to make for educational and other purposes. It is generally expected that the position will continue throughout the month. One merchant said that payments for sight drafts now arriving for goods which were included in the current half-year’s licences were being accepted by the banks, but the banks were not immediately transferring the money overseas, and, in consequence, there was an accumulation of credits, awaiting transfer, chiefly to London. “We appreciate the help the banks are giving us, and we realise the difficulties they have to meet, but the conditions now prevailing are causing a great deal of irritation and worry to importers,” he said. “The position is different from anything we have experienced in the past, and the effects on the Dominion’s overseas credit may be felt for a number of years.” It was thought that New Zealand would be deprived of certain long-es-tablished trading arrangements and privileges, which had a high commercial value and that British manufacturers would tend to disregard the Dominion when they had special lines and novelties to offer agents for overseas firms.