BRITISH RESTRICTIONS.

New Zealand Herald, Volume LXIX, Issue 21118, 27 February 1932, Page 12

BRITISH RESTRICTIONS.

BAN ON EXPORT OF CAPITAL.

GUARDING NATIONAL INTERESTS. (Received February 2K, 5.5 p.m.) LONDON, Feb. 25. The Chancellor of the Exchequer. Mr. Neville Chamberlain, stated in the House of Commons that there was no evidence that the existing restrictions on tho export of capital were hampering tho export trade. They would be removed as soon ns it could be done without detriment to the national interests.

The announcement that the Bank of England would be authorised to suspend gild payments was accompanied by an unofficial embargo on the export of capital. A warning was given that any British citizen who purchased foreign securities was "deliberately adding to the country's difficulties" and bankers required their customers to furnish a statement declaring that their purchases of foreign exchange were "not in any way against the spirit of the Government's recommendations relating to the export of capital from this country." Evidently this was not sufficient, for on September 22 the Treasury made an order that "until further notice purchases of foreign exchange or transfers of funds with the object of acquiring such exchange, directly or indirectly by British subjects,"oi' persons resident in the United Kingdom, shall be prohibited except for the purposes of financing (1) normal trading'requirements; (2) contracts existing before September 21, 1931; (3) reasonable travelling or other personal purposes."