BANKS RESTRICT

Evening Post, Volume CXV, Issue 38, 15 February 1933, Page 11

BANKS RESTRICT

GOVERNMENT'S REQUEST

Statements have been published in Auckland to the effect that the.New Zealand banks are.restricting tho negotiating of drafts on London, and that they are not accommodating transactions that suggest speculative profittaking. The following statement' was also published iri Auckland yesterday: —"Representations have been' made to the Associated Banks, but no reply has so far been received." It is'implied that such representations have been made by stockbrokers interested in- carrying out mining share and. other transactions— transactions which stockholders think should, on their merits, be facilitated. •Interviewed this morning, the chairman of the Associated Banks (Mr.- J. T. Grose) confined his comment to the single, statement' that the ' Associated Banks had received no comrimnieation from stockbrokers in Auckland about resolutions on the negotiating.of drafts on London, but the banks have been restricting the negotiating :of such drafts at the request of the Government. -. . . .... PROFITS ON RETURNING FUNDS. r From- other inquiries, it appears that the following is the position with-re-gard to .the transfer of capital from London:—Owing to the New Zealand high exchange, considerable demands outside the ordinary course have been made on banks in London for transfer to. New Zealand, arid the London-banks carefully examine these and are -.lowing.; only, such transfers as in their discretion are deemed right and suitable. Some of the "demands in London for transfer to New Zealand; appear to bo tho result of speculation, in that London funds were bought in New Zealand before tho recent increase in. the rate of exchange, and the benefit of the present. high; rate could: be won on return of such money from London to New.ZCaland.