ORDER REVOKED

Rotorua Morning Post, Volume 2, Issue 264, 1 July 1932, Page 5

ORDER REVOKED

("Post" Special Commissioner.)

. EXCHANGE CREDITS TO REMAIN FREE FROM TO-DAY ORDER-IN-COUNCIL

WELLINGTON, Thursday. By order-in'-council published in a Gazette to-day, the Govarnment gave effect to its previously announeed decision to revoke the export licenses order as from. July 1, but requiring compliance with the terms and conditions of the licenses under which goods have been placed on board ship until to-day (Juiie 30). An essential portion of the order- . in-council states that export licenses orders "shall not apply to any goods placed on board an exporting ship on or after July 1, but otherwise shall remain in full foree and effect." This means, explained the Prime Minister (Rt Hon. G. W. Forbes) that no export license is required to export goods placed on board ship from July 1 onward, and eonsequently exporters of such goods will be free to deal with export credits resulting from the sale of such goods overseas in such manner as they may deem fit. The export licenses order, however, applies to all goods placed on board an exporting ship up to June 30 to the same extent as if the present order-in-council had not been passed. That is to say, the exporters of all such goods must comply with the terms of their licenses, and the conditions of the export licenses order. Tjime of Loading The time of loading the goods aboard ship is the deciding factor and the holding back of shipping documents until July or later does not in any way free the exporter from the obligation to sea that the proceeds from the sale of such goods are paid to the bank nominated under the license.

Exchange credits that accrue from the goods exported on or affcer July X, are now free, Mr. Forbes continued, and in the ordinary course of events, here and overseas, they will remain so. The rates of exchange. as fixed from time to time by the banks, as the chief operators, will again be subject to the competition of the outside market. So long as the rates of exchange are governed by the demand for and supply of exchange arising out of genuine New Zealand business overseas, no legitimate ohjections can he raised by any seetion of the community, whatever these rates of exchange may he. Various far reaching eh- i.ges in the monetary policy are heing rdvocated, but that is another matter in connection with which it is not desirable to take any action until the results of the Ottawa Conference, and perhaps also of the subsequent international conference, are known.