CONTROL OF IMPORTS.

Manawatu Standard, Volume LX, Issue 115, 13 April 1940, Page 6

CONTROL OF IMPORTS.

A year ago most severe restrictions were placed on imports for the second half of 1939. Their effect is to be seen on many sides. With the rise in sterling, funds, however, it was hoped that, after 16 months of Government control, the Minister would be in a position to make some advance towards normal trade. On the contrary, his statement covering the fourth period, from July to December of this year, reveals fresh restrictions. Some items have been prohibited altogether and reductions have been made in others, all having an important bearing upon the Dominion s trade. The Minister, however, has made several concessions which must bo appreciated. By extending the third period licenses into the fourth period lie has recognised the difficulties importers have been facing because of the war. The Minister has also given an undertaking to consider the question of issuing _ future licenses on a yearly basis. The advantages of this course require no stressing. To-day the Reserve Bank, without allowing for the trading banks, has sterling funds of £12,600,000, in marked contrast to the position when ' import _ _ control was instituted. The British Government’s purchase of our exportable products lias been the prime factor in this improvement, and though receipts have been received much earlier than is custoary. increased prices have helped the position. The Minister also points out that imports have been retarded owing to the war and these must be paid for. War finance also enters into consideration. The cost is being met as far as possible from current revenue and no doubt the Minister anticipates requiring some portion of the London funds. He has also to find one million pounds by July 1 towards repayment of the ,£16,000,000 conversion loan arranged in London last year. There are other payments required from the London funds for the service of debt, and while the need for their conservation will be readily recognised, it will be hoped that, the position will materially improve in the near future so as to bring importing back to a sounder basis.