LICENSED IMPORTS

Otago Daily Times, Issue 23830, 9 June 1939, Page 16

LICENSED IMPORTS

SECOND-PERIOD GObDS | NO FUNDS AVAILABLE Refusal by trading banks (J»eb United Press Association) , NEW PLYMOUTH, June 8 V : Flat refusal in the meantime to provide funds for the purchase of overseas goods authorised by second period licences is being m&de by the trading banks in New Zealand. This position was discovered to-day by two large importers, who 'stated that the effect was serious. The banks were not issuing credit for second-period goods despite the ample licences held by importers. This means that payment cannot? be made for goods already ordered, and possibly ready for shipment, and as shippers are not, prepared to take a risk, credit is held up in New Zealand indefinitely,-and th 6 goods fare, not being forwarded. It is considered that some goods may already be on the water so as to arrive in the second period. In the past the trading banks have been providing credit relative to the permits the Reserve Bank has granted, but the trading banks, it is believed, have tiot been reimbursed, for iv all first-period goods, and. so are not prepared to take, a risk for the second, period until the position is clarified. It is understood that there is no differentiation between one trade and another, but credit is being issued to no one. The fact that im- ; , Sorting firms have ample funds in f r ew Zealand makes no difference. They still cannot secure the finance:' they require overseas to take advantage of their import licences? The suggestion was made in one quarter that the bank's refusal would continue until Mr Nash completed his mission in London and provided adequate sterling funds.