STEEL AND WIRE

New Zealand Herald, Volume LXXVI, Issue 23381, 24 June 1939, Page 17

STEEL AND WIRE

ORDERS SUSPENDED NO GUARANTEE OF FUNDS SECOND IMPORT . TERM CONCERN IN DOMINION Because the Reserve Bank no guarantee that sterling will be available in respect of import licences granted for the second half of the year, which begins on July 1, distributors of Australian steel, plain and barbed wire and wire-netting have notified Dominion merchants that 110 orders will be accepted unless guarantees arc forthcoming in respect of the necessary funds. s Mr. R. H. M. Rowe, Australian and New Zealand sales manager for the Broken Hill Proprietary, arrived in Wellington from Australia by tho Awatea yesterday and conferred with representatives of tho New Zealand Steel Guild, who came from various parts of the country. The conference was preparatory to a deputation to wait on tho Reserve Bank and also possibly 011 tho Government. Australia's Strong Position Australia is practically the exclusive supplier of steel for the building trade. Importations of steel were recently made subject to a special licence scheme und<?r which the applicant has to satisfy the Government that tho steel is required for purposes considered absolutely essential. Wire in its various forms, supplied by two companies related to the Broken Hill Proprietary, is treated as an essential class of import for the farming industry and also for the manufacture of nails in respect of which there are factories in Auckland and Christchurch. Tho action of Australian suppliers of steel and wire has aroused intense concern among importers generally as they fear that a similar course may be taken in respect of other classes of goods. However, there is 110 evidence of that yet. First Period Credits It is felt that the seriousness of the position can be overstressed in view of the fact that the Reserve Bank is still extending credits for first period licences. The view is taken that the bank is cleaning up commitments for first-period licences before it takes stock of the position for tho second term and apportions available exchange. So far the step taken by the bank is confined to a refusal to guarantee that funds will be available against tho arrival of goods in the second period; the situation has not developed to the point of a refusal to grant funds.