TURNOVER DROPS OVER A HALF
CRIPPLED BY IMPORT RESTRICTIONS PROMPT PAYMENT OR NO SHIPMENT “ Business is almost at a standstill,” said an importer this morning when ciuestioned on the effects of the import restrictions. “ We have been allocated funds on a basis of about 25 per cent, of our applications up to December, a further 25 per cent, up to March of next year, and the remainder over the period to June. But what is the use of booking orders on this basis? Our overseas suppliers will not ship unless they are assured of prompt payment. “We can’t blame them. Interest alone on valuable goods, especially on those consignments other than British or Empire, for which no funds have been allotted for the first three mouths, would be lost on their money to the suppliers, who would get no payment during this time. They would have to wait at least nine mouths for the money, losing interest up to the time of payment. Naturally they are not prepared to accept business on these terms. In fact, some of the shipments now on the water will probably bo returned to the overseas shippers, although possibly they will allow goods of relatively lower values to remain' here on this ‘ extended! payment ’ system we are forced to operate on at present.” Producing documents to substantiate his remarks, the importer indicated that for an application for £4OO, for immediate payment for goods, he had been allotted nothing to the end of December, £SO to the end of March, and £350 from April 1 to the end of June. ”If the shippers give us the goods,” he said, “ they will lose interest on their money entirely in the first three months, but will be repaid on oneeighth of the total in tho next three months, and will have the remainder coming in in the rest of the period.” REVEALING FIGURES.
“ Our turnover for the month of August of last year was over £3,000. This year it was £1,300. This is the extent to which import restrictions are hampering our business. If there is no improvement—and_we cannot see that the import restrictions can be lifted appreciably in the next 12 months—we cannot hope to carry on. This month has been even worse so far as business is concerned. It is not much use booking orders when there is no guarantee that finance will he arranged iu future. Our competitors are in the same box,” he concluded.
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Evening Star, Issue 23371, 14 September 1939, Page 16
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410TURNOVER DROPS OVER A HALF Evening Star, Issue 23371, 14 September 1939, Page 16
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