MONEY HELD UP

New Zealand Herald, Volume LXXVI, Issue 23431, 22 August 1939, Page 10

MONEY HELD UP

TRANSFER DIFFICULTIES AUSTRALIAN FIRMS' FUNDS TRADE ON CASH BASIS Becauso of transfer difficulties, largo sums of Australian money are accumulating in New Zealand, according to an Auckland merchant, Mr. E. W. Sharp, who returned from Sydney by the Monterey yesterday. He said the position was causing concern among business directorates in Australia, and tho money could not bo invested, as it was not known how long transfers might bo delayed. Tho money consisted chiefly of the proceeds of goods from Australia, in addition to commissions t earned by Australian companies with branches in New Zealand, continued Mr. Sharp. Numerous firms had decided to confine their trade with New Zealand to virtually a cash basis. Firms willing to continuo trado with Now Zealand in spite of tho present difficulties were limited to thoso which accepted the risks associated with deferred payments. "Either they have some uso for money temporarily held here or they aro confident that tho measures now being taken by the Government to restoro tho exchange position will bo so effective as to enable the lieserve Bank's embargo to be modified early next year," said Mr. Sharp. "It is realised that there can be no change during the next few months."