MILLIONS FOR TRADE

Star (Christchurch), Volume XLIV, Issue 458, 20 May 1932, Page 1

MILLIONS FOR TRADE

Important British Scheme to Aid Business. BILLS TO BE ISSUED AT 3 P.C. United Press Assn.—By Electric Telegraph—Copy righ t. (Received May 20, 8 a.m.) LONDON, May 19. A plan to release millions of pounds for trade is revealed by the city editor of the “ Daily Herald.” He states that it is proposed that industrial firms needing funds for development or for financing contracts should issue three or six-months bills at about 3 per cent, instead of paying 5 per cent for bank overdrafts. The bills would be issued under the auspices of the Bank of England and discounted by the joint stock banks and the money market. It is hoped thus to release part of the £150,000,000 normally employed in discounting foreign trade bills, which are more acceptable to the banks than overdrafts, because they are due for repayment on a definite date. Negotiations are continuing between the banks, the money market and the trade organisations.

SHOULD EASE CREDIT. London More Hopeful for New Zealand. The English plan to release for trade millions of pounds which as a rule go to discount foreign trade bills is regarded by local authorities as a further measure for easing credit. Professor A. IT. Tocker, of the Faculty of Economics at Canterbury Oollege, explained this morning that London for some time had been moving in the direction of easing credit. The object of the movement was to stimulate trade, stimulate buying, and , thus restore prices. The very low j bank rate was another step in this | direction. It was unlikely, said Professor Tocker, that any effect would be felt yet in this country, because the year’s produce had mostly been dealt with, but the outlook for next year was very hopeful. A banker agreed with the view of Pro- ; fessor Tocker that the move was another i towards the expansion of credit with the object of stimulating trade. The j ! definite term would give British com- I mercial people a chance to compete in the money market with foreign bills. If prices remained as they were at present, he said, the position would become impossible, and it would be difficult to foretell what might happen. The whole trend among those in control of London finance had recently been toward easing credit.