EXPORT LICENSES

Otago Daily Times, Issue 21538, 9 January 1932, Page 7

EXPORT LICENSES

PREFERENCE TO LOCAL BODIES A CANTERBURY PROTEST (Special to Daily Times.) CHRISTCHURCH, January 8. An emphatic protest against the Government using its powers in the export licenses order “ to cover up the financial difficulties of local bodies by giving them the preference of the London exchange 51 and a criticism of the “ lamentable failure of the public authorities to “ stop the tremendous rate of borrowing ” are contained in a letter which has been addressed to the Prime Minister by the Canterbury Chamber of Commerce. The text is as follow: — “ Since the issue of the special Gazette on December 22, 1931, covering the export licenses order business men have been seriously alarmed to learn that £14,000,000 is to be impounded in London out of exporters’ credits to pay Government interest on Treasury bills and local body interest. “This chamber is agreed that in the case of the interest duo on Government loans our national credit requires that some arrangement shall be made to pay this interest, and to that extent, so long as the arrangement is only a temporary one, it does not wish to question the Government’s" action, even though this action is a further interference with private business. The chamber has, however, issued repeated warnings concerning local body indebtedness, and it is now alarmed to learn that a commandeer of the exchange is to be applied to assist the local bodies to pay their interest due in London. “ The credit of local bodies is in an entirely different category from our national credit, and this chamber protests emphatically against the Government using its powers to cover up the financial difficulties of the local bodies by giving them preference of tlio London exchange which is the property of private traders. We see no reason why the local bodies should not buy their exchange on the same terms ns traders. We think the time is long past when the skids should be greased to enable them to saddle us with further burdens.

“ A press report published on January 5 also indicates that £4,000,000 will be required for the redemption of Treasury, bills falling due in June next. We consider it grossly unfair and unjust that the Government should so restrict the business and enterprise of the country because it has failed lamentably in reducing its expenditure in accordance with the country’s ability to find the means, and so has had recourse to this too easy method of finance.

“ The special emphasis of this protest? is upon the general failure of the public authorities to stop the tremendous rate of borrowing which can have no other ending than serious consequences for the country and Government, whom we desire to help. This chamber would be glad to know and respectfully asks if there are other short-dated loans falling due, or does the Government propose further loans on Treasury bills which would increase the already large “ first pull ” of £14,000,000 ?■ "Lastly, on behalf of the importers, we would like some definite assurance that if it is necessary for the Government to make a first call of £14,000,000 on the exchanges will there still be sufficient funds available in London for the reasonable requirements of legitimate trade? An assurance on this point is specially asked for.” No reply has been received to the letter.