OVERSEAS FUNDS

New Zealand Herald, Volume LXXVII, Issue 23721, 30 July 1940, Page 9

OVERSEAS FUNDS

RETURNS BY HOLDERS

LAST DAY TO-MORROW CURRENCY AND SHARES Returns of nil overseas securities or currency held by persons in New Zealand must bp in the hands of the chief cashier of the Reserve Bank to-mor-row. The obligation is contained in the Finance Emergency Regulations, 1940 (No. 2), which were gazetted last month. With such a plethora of various types of forms, many investors and holders of overseas currency have not taken kindly to the added labour. Brokers and others can testify to the number of protests, and the regulations can hardly be described as popular. The. hope is held out in some quarters that after this stock-taking at the end of the month, the ban on dealings in overseas securities may bo relaxed to permit of transfers between New Zealand holders. Changes in ownership could be easily traced by a system of monthly returns from brokers. wStock Exchanges have not been altogether idle and the interests of holders are being protected in every possible way. Insurance Companies Aflected Shareholders will not be tho only class affected, for many firms and individuals have bank balances abroad. Insurance companies, in particular, have large holdings in overseas countries, in most cases being compelled by the laws there to have substantial liquid assets. The Minister of Finance, the Hon. W. Nash, has stated that the securities would be realised only when circumstances required and for what was essential for the war effort. The opinion has been expressed that when the extent of overseas holdings of shares and cash was known, there might bo no need to interfere with securities. It has been estimated that there must be over £'1.000,000 available annually from New Zealand holdings in Australian stocks and shares, and this, together with cash balances, should go a long way toward meeting the Government's requirements. Payment for any securities acquired will be either in cash or New Zealand Government stock, or partly in one and partly in the other. Steps in Britain and Australia One of the steps taken in the mobilisation of liquid dollar assets by .Britain was the transfer to Treasury control of 117 dollar securities. Prices were paid in sterling at what tho Government considered was not less than the market value on the date of the order. The procedure adopted in Australia for the acquisition of holdings in 120 specified dollar stocks did not represent such direct action on the part of the Government. Holders were allowed to market their securities themselves. They were given a period six months, with the proviso that not less than half tho value of holdings must bo disposed of, within the first three months. Net proceeds were to be lodged to tho New York account of the Commonwealth, the owners being paid in Australian currency at the telegraphic transfer buying-rate on New York on the date of lodgment. PROTECTING INTERESTS PALMERSTON NORTH BODY [BY TELEGRAPH —PRESS ASSOCIATION] PALMERSTON NORTH, Monday A representative meeting of local overseas investors, called by the Mayor, Mr. A. E. Mansford, decided to form a local association with a view to establishing a New Zealand organisation to protect the interests of overseas investors. A committee was elected to get into touch with the main centres as speedily as possible.