SHARE CONTROL

New Zealand Herald, Volume LXXVII, Issue 23687, 20 June 1940, Page 10

SHARE CONTROL

OVERSEAS HOLDINGS TRADING BAN REIMPOSED WITHDRAWAL OF QUOTATIONS Quotations for the stock of overseas companies which do not own share registers in New Zealand were again withdrawn by the Auckland Stock Exchange yesterday afternoon. Business in these shares was done at the morning and mid-day calls, but following advice received from the Stock Exchange Association in Wellington during the afternoon the shares were not called at the final meeting of the Exchange for the day. A similar withdrawal of quotations was made in southern centres, action being taken under the Finance Emergency Regulations No. 2, which were gazetted this week.

Surprise at the reimposition of the ban, coming just after the recent agreement with the Reserve Bank to continue dealings on a domestic basis, was expressed by Mr. J. Frater, chairman of the Auckland Stock Exchange, who said that efforts were being made to have the position clarified. He said the Government rightly had acquired the power to take over holdings of overseas shares as required for war purposes, but there appeared to be no advantage in again stopping dealing among New Zealand residents. Mr. Frater said he was satisfied that the safeguards recently introduced were adequate to stop any drift _of stocks out of the country. If requisition was decided upon for warpurposes, it appeared relatively unimportant whether one New Zealander or another was the owner of the scrip concerned. EFFECT OF NEW REGULATIONS TRANSFERS NOW UNLAWFUL [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Wednesday When the suspension of dealings in Australian shares and other overseas securities was referred to Mr. Andrew Hamilton, president of the Stock Exchange Association of New Zealand, to-night, he said it was quite clear the Finance Emergency Regulations No. 2, gazetted yesterday, making unlawful all transfers of and other dealings in foreign securities, closed dealings in securities on registers outside of New Zealand. Mr. Hamilton said the previous Finance Emergency Regulations issued in April prevented dealings in the "black market." Exemptions to those regulations were granted when the New Zealand Stock Exchanges were able to provide a simple means of the Government achieving its object without completely prohibiting internal trading in popular Australian and other overseas securities. The new regulations Temoved those exemptions and gave power to the Government to take over overseas securities held by persons in New Zealand. In these circumstances and until further clarification of the position was obtained, the Stock Exchanges of New Zealand could not undertake the quotation of, or dealings in, securities on registers outside or New Zealand,