FUNDS FOR IMPORTS

Evening Post, Volume CXXVIII, Issue 1, 1 July 1939, Page 8

FUNDS FOR IMPORTS

CRITICAL, COMMENT

Fears were expressed by the "Daily Mail," London, that New Zealand London balances were now so low that there was danger of default "in three weeks, unless something is done to prevent it." This comment on the condition of Nefw Zealand's funds in London was the subject of inquiry made by "The P.ost" in authoritative quarters. It was learned that generally speaking goods ready for shipment from- the United Kingdom to New Zealand are not being held up because sterling funds are not available; nor was it felt here that there was any danger of commercial default within a period of three weeks. Necessarily, the trading banks were doing all that they could possibly do to meet the present situation and in the general interest of commerce were dealing carefully with the resources at their disposal. However, if exporters in the United Kingdom have sent goods to New Zealand without requiring previous payment for them, presumably they have been prepared to accept New Zealand currency in payment for those goods. Incases such as these it would hardly be correct to say that default had been made, if remission of the funds is temporarily delayed. ' Hope was entertained that finance could be arranged during a period for any goods awaiting shipment. But there may be some delay in arranging long-term credits for future shipment*.