FINANCE CONTROL

Otago Daily Times, Issue 24414, 27 September 1940, Page 6

FINANCE CONTROL

REGULATIONS AMENDED WAR LOAN SUBSCRIPTIONS COMPULSORY PROVISIONS RESERVE BANK AS AGENT (Per United Press Association) WELLINGTON, Sept. 26, Regulations amending the Financ* Emergency Regulations, 1940, which were issued in June were published in to-night's,Gazettes •'■"'. . , . One of the new regulations deals with.fixed deposits payable.in foreign currency and requires the owner of every such fixed deposit to furnish to the Minister of Finance, or as he directs, information and particulars thereof by October 15, 1940, or within 14 days after the date on which he becomes the owner of a fixed deposit, whichever date is the later. The Minister of Finance (Mr W. Nash) explained this evening that he had delegated his powers under this regulation fo the Reserve Bank of New Zealand. Returns should, accordingly be made to the Reserve Bank. The regulations were complementary to the existing regulations requiring the holders of foreign securities and foreign currency to make returns of such foreign securities and currency to the Reserve Bank. Another of the new regulations amends a clause in the' principal regulations, which states that if the Minister of Finance has reason to belieye that any person has not subscribed in due proportion to his means to any war purposes loan the Minister by notice to such person may require him to subscribe for any specified amount to such war purposes loan. The new amending regulation states that notice may be.given by publication in the Gazette to any specified person or two or more specified persons, or to all persons of a soecined class (such a Gazette notice being a notice to and binding on all persons affected by it), and such a notice may indicate the amount or the respective amounts required by notice to be subscribed. Where in any such, notice the amounts are indicated by reference to a-per-son's inc Some or income tax, the Reserve Bank, which acts as the Government's agent in the issuing of prospectuses of any Government loans and receives applications for subscriptions thereto, will furnish the Commissioner of Taxes with statements of the persons who have subscribed. The Tax Department will then check such statements with the amount of income or of income tax payable by such person and indicate to the Minister to what extent any such person has failed to comply with the terms of the notice in the Gazette. Any certificate given by .the Commissioner of Taxes as to the amount which any person is required to subscribe, pursuant to the basis set out in such Gazette notice, is to be conclusive evidence of such person's compulsory liability to subscribe for such war loan. Another of the amending regulations is designed to remove a difficulty confronting trustee savings banks who may wish to contribute to war loans. Under a proviso to section 33 of the Savings Banks Act, 1908. a savings bank is prohibited from investing more than 90 per cent, of its total funds. During the last war this limitation was removed in" so far as investments in war loans were concerned, the same course ?s now to be followed. ■-'■ Other-amendments are purely machinery amendments of the existing regulations.' » /•„««-,•.