LOAN NEGOTIATIONS

Nelson Evening Mail, Volume LXXIII, 30 June 1939, Page 5

LOAN NEGOTIATIONS

MR NASH’S TASK BANK CHAIRMAN’S APPEAL SYMPATHY AND GENEROSITY URGED l! PA -Bv Kleetnc Tplegr&ph - Cnp\ r mlu (Received 30th June, 10.30 a.m.) LONDON, 29th June. Lord Balfour of Burleigh, presiding at the National Bank of New Zealand annual meeting, said that hopes that exchange control would repair the inroads on sterling balances were disappointing, partly owing to substantial imports for secondary industries, and partly owing to the fact that capital transfers were permitted to continue on an unexpected scale, which added materially to the difficulty of those requiring sterling. The Government should immediately take the responsibility of laying down priorities to ensure that the volume of import licenses was kept within the limit of available sterling. New Zealand’s credit could not be maintained if ordinary trading operations could not be engaged in with confidence.

Referring to Mr Nash’s task, he said: Though the moment is not propitious for fresh borrowing I have no doubt that Mr Nash’s request for a defence loan will be sympathetically considered. There is also urgent necessity for fresh money to finance imports if serious dislocation of trade, amounting to commercial default, is to be avoided. I earnestly hope, whatever the wisdom or folly of the Government’s policy, that those negotiating with him Will remember that sympathy and generosity will do more than rescue the Government from their difficulties, which are largely of their own making, wfll save further losses and unemployment in British firms exporting to New Zealand, and provide the security needs for the British investor.”