EXCHANGE TRANSFER

Taranaki Daily News, 11 April 1935, Page 4

EXCHANGE TRANSFER

PRUDENTIAL COMPANY PERMIT.

OF NO BENEFIT TO SOCIETY.

By Telegraph—Press Association.

Wellington, April 10.

Opening the new Prudential Assurance Company’s building to-day, me acting Prime Minister, the Rt. Hon. J. G. Coates, said that during 1933-34 while the Banks’ Indemnity Exchange Act was in operation restrictions were placed on the transfer of capital to New Zealand from London. Cases were considered on their merits and some transfers were allowed within the scope of the Act, i.e., at the fixed rate of exchange. Approval was given during 1933 for transfer of up to £60,000 from London for the purposes of the Prudential building provided the remittance was spread and brought out as and when required for progress payments on the building. No information ' was available as to the extent to which this authority was exercised. In August, 1934, when the Reserve Bank took charge of the exchange rate, .all restrictions on the transfers of capital ceased, but no material alteration was made in the rates of exchange. Thus, even if this authority were exercised, as it turned out no benefit accrued to the society in the erection of : the building.