STERLING FUNDS

Poverty Bay Herald, Volume LXVI, Issue 19978, 1 July 1939, Page 7

STERLING FUNDS

DOMINION CREDIT NEED FOR PROTECTION ADVICE IN LONDON MISSION OF MR. NASH GENEROSITY URGED (Elec. Tel. Copyright—United Press Assn.) (Reed. June 30. 2.40 p.m.) LONDON, June 29. Lord Balfour of Burleigh, presiding nl the annual meeting ol' the National Bank of New Zealand, said that the hopes that exchange control would repair the inroads in the. sterling balances were disappointed, partly owing to substantial imports for secondary industries and partly owing to the fact that capital transfers, were permitted to continue on an unexpected scale which, added materially to the difficulties of those requiring sterling. i The Government should immediately take the responsibility of laying down priorities to ensure that the volume of import licenses was kept within the limit of the available sterling. Need of Confidence New Zealand’s, credit could not be maintained if the ordinary trading operations could not be engaged in with- confidence, he said. Referring to the task of the New Zealand Minister of Finance, Mr. W. Nash, he said that though the moment was not propitious for fresh borrowing he had no doubt that Mr. Nash’s request for a defence loan would be sympathetically considered. ’ There was also an urgent necessity for fresh money to finance imports if a serious dislocation of trade amounting to commercial default was to be avoided. ‘T earnestly hope that whatever the wisdom or folly of the Government’s policy, 'those negotiating with him vrfill remember that {sympathy and Generosity can do more than rescue a Government from difficulties which are largely of its own making and may save further losses and unemployment in British firms exporting to New Zealand and provide security for the needs of the British investor,” said Lord Balfour.