EXCHANGE PLAN

Gisborne Herald, Volume LXVI, Issue 20070, 17 October 1939, Page 2

EXCHANGE PLAN

EMPIRE MEASURES MARSHALLING OF CREDIT AUSTRALIAN POWERS FURTHER EXTENSION Exchange control as a war measure is now being extensively operated by Australia, Canada, Newfoundland, Fiji, India and Ceylon. Purchases of the currencies of these countries by banks are confined strictly to normal requirements. Control similar to that assumed by the Dominions and colonies mentioned is also in operation in New Zealand, but. these measures were adopted from economic neccessij.y prior to the outbreak of war. Because of the widespread investment in Australian securities by New Zealanders special interest attaches to the powers taken by the Commonwealth * Government to marshall the oversea credit of Australia for national purposes. These were further extended on October 5 by regulations bringing foreign securities and certain property owned abroad by Australians under national control. Register of Credits According to reports from Australia, the Federal Government is preparing a register of the bulk of credits owned in overseas countries by Australians, so that if necesary this credit can be acquired for the nation to meet overseas interest commitments or to finance the purchase abroad of material and other essential supplies. The regulations are designed to assist further in preventing the export of capital from Australia and are likely to have an important effect on share dealings between New Zealand and Australia, which in the past have grown to an extensive scale. The principal securities covered by the regulations are shares, stock, bonds and similar securities, repayable, registered or situated outside Australia. Any other property situated outside Australia also can-be brought under control by proclamation. Steps already have been taken to proclaim gold held overseas and deposits or credits in foreign countries or Canada, Newfoundland or Hongkong to bo “foreign securities” for the purpose of the regulations. Export of Securities Limited No securities, whether domestic or foreign, may be transferred outside Australia without the consent of the Treasurer. Owners of external securities must neither dispose of them nor otherwise enter transactions affecting them without the consent of the Treasurer. For the present, deposits and bank balances in Canada, Newfoundland and Hongkong are exempt from this restriction ißy the regulations, persons holding any external securities must submit a return showing their value, nature and domicile to the Commonwealth Bank. This must be done within 30 days of gaining possession of the securities. For the present, the obligation to furnish this return will not apply to securities held in any part of the Empire other than Canada, Newfoundland and Hongkong, and on which interest or principal is payable in Empire currently.