NOT AVAILABLE

Gisborne Herald, Volume LXVI, Issue 19990, 15 July 1939, Page 7

NOT AVAILABLE

OVERSEAS EXCHANGE IMPORTS FROM SYDNEY COMPLAINTS P.Y TRADERS reserve BANK beamed (Per Press Association.) DUNEDIN, this day. “We regret having had to cable you that in view of the difficulty securing the transfer of funds from New Zealand, we were relueumuy compelled to cancel orders unless it was * possible for you to arrange tor funds to foe established in Sydney against documents.”

Thus begins a letter to a local company from a Sydney supplier. Statements by local importers Ru’thei clarify the position. One stated that for some weeks the local trading banks had repressed letters of credit for shipments.

The Ibanks say that although import licenses have 'been issued, the Reserve Bank is net producing overseas exchange to allow them to pay for goods. One importer stated: “We cannot blame the banks because every letter of credit reduces their overseas assets, which are worth 10 per cent more .o them elsewhere than in New Zealand.

Another importer was more emphatic “If we cannot get funds, we cannot buy. If we cannot buy. we cannot sell,” he declared. "That means we will go out of business. You can get permits for anything required by the Government. Also, money to pay for them is given automatically, but we cannot all live on the Government. \\c will shortly have houses built the Government, but nothing to put in our stcrxachs.”