CREDITS POOL ENDS.

Star (Christchurch), Volume XLIV, Issue 494, 1 July 1932, Page 12

CREDITS POOL ENDS.

Regulations Repealed by Order-in-Council. MR FORBES’S STATEMENT. Per Press Association. WELLINGTON, June 30. The exchange credits pool regulations have been repealed by an Order-in-Council, published in the Gazette, which will operate from midnight. Commenting on the termination of the arrangement the Acting-Minister of Finance, Mr Forbes, reiterated that the release of the pool was only in accordance with what had been understood all along—that it would not be kept in operation one moment longer than the Government found necessary. Mr Forbes emphasised the requirement that the terms and conditions on which export licenses had been issued still applied to all goods which were shipped up till midnight to-night. documents pertaining to such goods must be delivered to the banks concerned. Mr Forbes also repeated the opinion that the abolition of the pool would not result in a marked fluctuation in the exchange rate. In the course of his statement, Mr Forbes said: “As long as rates of exchange are governed by the demand for and supply of exchange arising out of genuine New Zealand business overseas, no legitimate objections can be raised by any section of the community, whatever these rates of exchange may be. Various far-reaching changes of monetary- policy are being advocated, but that is another matter in connection with which it is not desirable to take any action until the results of the Ottawa Conference, and perhaps also the subsequent International Conference, are known.”

AUSTRALIAN OPINION. SYDNEY, June 30. Discussing the New Zealand exchange rate, the Financial Editor of the “ Sydney Morning Herald,” in asking if the lifting of the restrictions will make any difference, remarks that the question is exercising the minds of traders with New Zealand. He then proceeds: “Money, which went to New Zealand from Australia Avhen stories of repudiation were flying around here, is noiv seeking repatriation and it is finding difficulties in the Regarding the position of New Zealand, the Avriter considered that the banks themselves will impose restrictions on dealings in exchange, and they' will sell exchange on London in New Zealand only for bona fide trade transactions. Also, any attempt to transfer money from Australia to London via New Zealand will, if possible, be prevented. “ The limitation of exchange transactions in this manner may bring about open market operations in New Zealand,” continues the article. “ There are sure to be some exporters with London funds available and when converting to New Zealand currency', they will desire better terms than the banks offer. If the banks restrict their offerings, importers and others in New Zealand who find difficulty in getting the exchange they want may go past the banks and buy from exporters.”