A MOOT POINT

Evening Post, Volume CXXVII, Issue 3, 5 January 1939, Page 10

A MOOT POINT

ORDERED GOODS

WILL THEY BE ADMITTED?

STERLING FUNDS

If the statement made by the Minster of Finance (the Hon. W. Nash) that goods ordered prior to December 5, 1938. would be admitted to New Zealand by special licence was to apply to goods shipped to New Zealand after January 1, 1939, the licensing of imports would not have an effect until next summer, Mr. Kain, of Reginald G. Kain, Ltd., said this morning. However, he. had received advice that sterling funds would not be available for the payment for shipments unless the banks were satisfied that a licence had been issued. If that were the case goods he had ordered before December would have to come within the. requirements of the next six months, and consequently business would be greatly restricted.

Mr. Kairi said that he believed that 99 per cent, of the soft goods importers in New Zealand had ordered next winter's requirements before last month, and he had understood that these would be allowed into the country and would not affect the goods licensed during the next six months. The only trouble appeared to be the ■ taking of orders for next summer. Travellers could' not be sent out to take orders until the importers knew what they would have to deliver. ITEMS REFUSED. As far as Wellington was concerned, Mr. Kain said, he did not think any licences would be issued until the end of the week, but he had received his licences for Auckland and Christchurch. He had been advised that licences would not be issued for cotton goods from Japan, blankets from England, or rubber sheeting from Germany. He could not understand the restriction on rubber sheeting, because ; Germany supplied requirements for hospitals and institutions, and supplies were essential. Rubber sheeting was not manufactured in New Zealand, and manufacturers in Australia were not making an article up to hospital requirements. Mr. Kain said that his applications had received varied treatment. He had expected the restrictions to be drastic, but he doubted if the Government was ; being drastic enough in some ways •because there was not a great amount of exchange available. An application to import Irish, linen from Portugal, where it had been hand embroidered, had been cut down, and it appeared that that would affect the Irish market to a pertain extent. Imports of United Kingdom cotton towelling had. been reduced from the £700 asked for for Auckland to £195, but the Christchurch order had only , been reduced from £290 to £214. APPLICATIONS REDUCED. The application to import art silk pieces had not been greatly reduced, Mr. Kain said. For Christchurch he had asked for £625 worth from the United Kingdom, and had received a . licence for £445. Auckland requirements amounting to £1900 had been reduced to £1276. Art silk from Germany had been reduced from £95 to £40 in one case and from £1100 to £299 in the other. Requirements from Japan had been reduced from £1200 to £925 at Auckland and from £875 to £651 at Christchurch.

Plain cotton piece goods from the United Kingdom were not greatly affected, the Christchurch order of £1550 being reduced to £1500 and the Auckland order of £4400 to £3525. Orders from Japan were reduced from £2175't0 £558 and from £3050 to £884.

Mr. Kain said that there was bound to be a good deal of confusion at the commencement of the licensing* process, but if goods ordered to supply retailers during the next six months were allowed in by special licence, as stated by Mr. Nash, there would be no difficulty in the meantime. If, however, the Reserve Bank had instructed the trading banks not to issue credits unless licences were presented, the goods ordered before December would have to be brought in on the licences secured for next summer's requirements, and the importers would be greatly restricted. No one appeared to know what the position was and if Mr. Nash would say that goods ordered for distribution during the next six months were to be allowed in the importers would know how they stood. If they could not get credits for their orders they would be forced Into dishonouring their obligations overseas.