TRANSFER OF FUNDS

Taranaki Daily News, 15 January 1931, Page 5

TRANSFER OF FUNDS

INVESTMENT IN DOMINION. Many new uses, as far as New Zea- ’ land is concerned, have been found for ‘ | the Stock Exchange during the past 12 j I months. For over a year it has been ( ! used by Australian investors, dissatis- 1 fied with Commonwealth securities, to ! transfer funds to New Zealand. During ’ 1930 Australian stocks were unloaded in greater volume than ever before, and i | much of the money realised was converted into New Zealand Government bonds and stocks. Toward the end of the year the New Zealand market approached saturation point and other means were adopted to get money across and circumvent the action of the associated banks to restrict the. transfer of funds for investment outside Australia. Sydney and Melbourne brokers 1 developed a profitable business buying ' the drafts of Commonwealth exporters who were doing business with New ’ Zealand. These drafts would 'be . col- ’ lected in New Zealand in the ordinary way and the money invested in New ’ Zealand stocks, particularly Government loans or Bank of New Zealand shares. One transaction put through during J the holidays illustrates the method. A s Sydnev exporter sold a small consignment of rice to New Zealand in parcels 3 which went to all parts of the North Island. 1