OVERSEAS TRADE

New Zealand Times, Volume L, Issue 11684, 23 November 1923, Page 2

OVERSEAS TRADE

THE FINANCIAL ASPECT. SPEECH AT LUNCHEON CLUB. Mr T. A. Haile, of the inspection staff of the Union Bank of Australia, was the speaker at the “Y” luncheon yesterday, which was well attended. His subject was the financing of overseas shipping, and be indicated the many methods by which goods were bought and paid for at either end. The business was usually done through the banks through which the bills were negotiated. The banks acted as -agents for collection of the bills, receiving a small commission in return for the service rendered. The procedure in the event of the hills being dishonoured was outlined, and also the means of disposing of goods arriving in the dominion m such circumstances. The speaker also showed how trianglar transactions were carried out between, Wellington, New York, and London, which, he said, were “very simple when one got the hang of them.’’ Exchange rates also entered into such matters, the exchange being based on the Tate ruling on the date of payment. Letters of credit had been substituted for most other methods in recent years, and were an improvement, as It did not _ necessitate a trader tying up his capital while the goods were in transit. Thanks were extended to Mr Harle for his instructive address.