REDUCED LIMIT FOR DRAFTS
Restrictions Imposed By Banks FLOW OF CAPITAL TO AUSTRALIA HIGHEST AMOUNT FIXED AT £125 Within the past week New Zealand banks have imposed greater restrictions on the flow of capital to Australia and Great Britain, and there are certain difficulties confronting prospective purchasers of Australian stocks.
The chairman of the Invercargill Stock Exchange (Mr A. H. Mackrell) in an interview with The Southland Times yesterday stated that restrictions were becoming greater, arid he understood that instructions on the subject of drafts were issued to the banks on Friday last. “Difficulties are increasing in the purchase of stocks in Australia,” he added. “Morever, a person going for a trip to Australia can get a draft for only £125. A week or two ago it was £250. Applications for drafts for greater amounts must be referred to the head office of .the bank issuing the draft.” , , Mr Mackrell added that the restrictions were not imposed by the Government, but by the banks because of the flow of capital from New Zealand. Trade was all one way at present, and it was contrary to ordinary banking practice to allow capital to flow out without any return. \
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https://paperspast.natlib.govt.nz/newspapers/ST19381027.2.25
Bibliographic details
Southland Times, Issue 23650, 27 October 1938, Page 4
Word Count
197REDUCED LIMIT FOR DRAFTS Southland Times, Issue 23650, 27 October 1938, Page 4
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