STERLING FUNDS

Otago Daily Times, Issue 23895, 24 August 1939, Page 8

STERLING FUNDS

MINISTER'S CONTENTION SHORTAGES IN THE PAST PAYMENTS MET BY BORROWING (From Our Parliamentary Reporter) WELLINGTON, Aug. 23. The contention that the present shortage of sterling credits in London was by no means something new was made by the Acting Prime Minister (Mr P. Fraser) when reS lying to the Budget debate in the [ouse of Representatives to-night. "There have been times in the past when the amount of sterling credits in London was insufficient to meet the import and debt charges." Mr Fraser said, "and when that happened the payments were met by borrowing." Mr S. G. Holland (Opposition, Christchurch North): Well, how are they being met now? Mr Fraser: They are being met jn the same way. Mr W. J. Poison (Opposition, Stratford): For years you have been preaching that we should not borrow abroad. " We have said that we should not borrow abroad if we can use the resources of our own country," Mr Fraser replied. "You cannot use the resources of the country to meet debts overseas." EFFECTS OF RATIONING SILK MANUFACTURERS' FEARS INDUSTRY JEOPARDISED (Special to Daily Times) WELLINGTON, Aug. 23. Manufacturers of silk are the latest to be affected by the Government's rationing of sterling funds and unless the imposition is removed there is bound to be a desperate shortage of stockings next year, according to a statement to-day by the head of a manufacturing firm. Practically 75 per cent, of overseas credit would be postponed, with the result that it would be impossible to buy yarn, raw silk, chemicals and various other essentials for the making of hosiery in sufficient quantities to satisfy the demands of retailers and the Duying public The person interviewed emphasised that his firm was not "moaning or squealing." It had been right behind the Government, and still wanted to be, but unless it could get the wherewithal to keep going it would simply have to close down. "Happy to Co-operate" "The Government has been telling us to build a nation, to develop secondary industries, and to employ more hands," he said. "We have been happy to co-operate. We have done everything the Government asked us to do within the limits of our finances. We will still do that so long as they do not put us out of business. Our firm is distributing to more than 1000 drapers in New Zealand, and they are looking to us for regular supplies, but from the end of this year we will be unable to cope with the demand if this restriction is forced on us." Because of the overseas credit position, his firm would be able to pay for only a fraction of what it required, he added. It would either have to go without the rest or arrange for extended and unlimited credit. "We are a bit oldfashioned, however," he said, "and believe in paying our way. That has been our practice all the years we have been in business." Concern for Staff He added that his firm employed 250 hands. It was most anxious not to embarrass the Government and make its problems greater by aggravating' the unemployment situation. That was the last thing it wanted to do, but the remedy was in the Government's hands. " We will -do our job if the Government allows us to " he said. They had not yet had the.opportunity of putting their case to the Government, as the pronouncement had been sprung on them only on Monday. He believed, howevei, that the manufacturers affected would seek an interview with the responsible Ministers at the earliest opportunity.