PERMITS ISSUED

New Zealand Herald, Volume LXXVI, Issue 23521, 5 December 1939, Page 8

PERMITS ISSUED

PAYMENT FOR GOODS THIRD TERM IMPORTS SPREAD OF REMITTANCES IMPROVED TREATMENT Reserve Bank permits for the remittance of moneys overseas for tlie payment of goods imported under third period licences covering January 1 to •Juno 30 next nre now being circulated to importers in Auckland through the trading hanks. Judging by the experience of importers, there lias often been a much narrower spread of payments [or goods than rules generally for the second period. The issue of permits is not yet general, so present impressions may subsequently be somewhat altered, but some permits provide for the remittances at the times sought in the applications, and in others the dates have actually been brought nearer. In several instances importers state they .applied for payments spread over the six months period; the authorised remittances for the total amount are from January to March, inclusive. The treatment is therefore better than they anticipated. Early Remittances When the Reserve Bank invited applications for the third period, it pointed out that to the extent that importers as a whole were able to arrange for payment to fall due overseas fairly evenly up to and including August, the necessity for the Reserve Hank to defer remittances after tlio respective due dates would he reduced, if not eliminated altogether. To what extent the bank has been able to restrict the deferring of remittances after the due dates cannot yet ho estimated, but while there are reports that some have been put back as far as November, there is sufficient evidence to indicate that the bank is attempting to clear up many import commitments in the early portion of the third term. Speedy Returns on Produce Sales It is believed that second term commitments provide for a fairly substantial levy on sterling funds about JNlay and June, and the bank desires, therefore, to take advantage with many third term permits of quicker returns from the sale of the Dominion's produce than was originally estimated. There is strong opinion that British bulk purchases of produce will mean speedier payments than in normal trading. Third term licensing conditions for importations automatically imposed such a drastic reduction of applications for permits for remittances compared with the current period that the bank's problem in making use of liquid sterling funds has been considerably lightened.