AUSTRALIAN SHARES

Otago Daily Times, Issue 24421, 5 October 1940, Page 13

AUSTRALIAN SHARES

CASH PAYMENTS AND " RIGHTS ' DISCUSSION WITH MINISTER AN UNDERSTANDING REACHED (Per United Press Association) WELLINGTON, Uct. 4. The payment of calls on Australian shares, the taking up of rights in Australian issues, and the transfer of credit balances from Australia were questions recently discussed with the Minister of Finance (Mr W. Nash) by a deputation representing the Investors' Protection Association. A report of the discussion has been made avail able by the association On the first question it was pointed out in respect to Australian Consolidated Industries that as the obligation* had been entered into before the regulations were issued it was only reasonable that facilities should be made available to pay these calls particularly in the case of investors who had established funds in Australia for the purpose. It was also suggested that L'uture dividends should be utilised " meet calls. In reply. Mr Nash stated that it wat not possible to send remittances fron. New Zealand to meet calls, nor did he favour the usinjt of dividend? for this purpose but he would take up with the Reserve Bank the question of applying nortion oi the credits oi >r vestors in Australia to meet calls In regard to the taking up oi " rights," it was urged that the sale of " rights" or the disposal of a portion of the old issue was uneconomic because, assuming the shares so sold could be replaced by other purchase* in the Dominion, double brokerage would be involved. The ieputation suggested that in the case of those with funds in Australia such funds should be used for the purpose as New Zealand would ultimately benefit and in any case if investors had other shares which they deemed it advisable to sell the proceeds should be applied for the purpose. Mr Nash was adamant about using current credit balances in Australia, but considered a case had been made out in respect of selling other Australian shares than the particular stock where " rights" had been issued to provide the necessary funds, and he promised to consult the Reserve Bank on this aspect. Mr Nash had since advised the association that, in'the case of New Zealand holders of Australian shares, who also hold "rights." he is prepared to agree to such shareholders selling sufficient shares to take up the " rights," even though such shares are not those of the actual company in respect of which the " rights " are to be taken up. The Reserve Bank has been advised accordingly. In regard to the transfer of credit balances and deposits, Mr Nash said negotiations with the Commonwealth authorities were practically completed, and shortly there would be no further trouble. The association is pleased to report that the Reserve Bank has now issued instructions to the trading banks, giving the necessary permission to transfer funds, as arrangements have been made for the release of these funds by the Commonwealth Government. The association adds that the impression gained from the interview was that sufficient cash reserves were available in Australia from current accounts or fixed deposits maturing to meet munition commitments in the Commonwealth for the next 12 months. " Then," said Mr Nash, "we will first call on the Commonwealth Government stocks, because these have appreciated since the outbreak of war, and there would not be any material sacrifice either to the holders or to the New Zealand Government."