FOREIGN DEPOSITS

Taranaki Daily News, 27 September 1940, Page 8

FOREIGN DEPOSITS

By Telegraph—Press Association.

PARTICULARS NEEDED FINANCE REGULATIONS

Wellington, Last Night. Regulations amending the Finance Emergency Regulations, 1940, issued in June, were published in tonight's Gazette. 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 particuiars thereof by October 15, 1940, or within 14 days after the date on which he becomes owner of the fixed deposit, whichever date is the later. The Minister of Finance, the Hon. W. Nash, explained to-night that he had delegated his powers under this regulation to the Reserve Bank of New Zealand. Returns should accordingly be made to the Reserve Bank. The regulations were complementary to existing regulations requiring holders of foreign securities and foreign currency to make returns of such foreign securities and currency to the Reserve Bank. War Purposes Loan. Another of the new regulations amends a clause in the principal regulations, stating that if the Minister for Finance has reason to believe any person has not subscribed in due proportion to his means to any war purposes loan, the Minister, by notice to such a person, may require him to subscribe for any specified amount to such a 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 specified class (such a Gazette notice being a notice to, and binding on, all persons affected by it), and such notice may indicate the amount or respective amounts required by the notice to be subscribed. Where in any such notice amounts are indicated by reference to a person's income or income tax, the Reserve Bank, which acts as the Government's agent in issuing the prospectus of any Government loans and receives applications for subscribers thereto, will furnish the Commissioner of Taxes with statements of the persons who have subscribed. The Tax Departeneut will then check such statements with the amount of income or of income tax payable by such a person and will 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 tlie Commissioner of Taxes as to the amount which any person is required, pursuant to the basis set out in such a Gazette notice, to subscribe is to be conclusive evidence of such a person's oompulsory liability to subscribe for such a war loan. Savings Banks and War Loans. Another of the amending regulations is designed to remove a difficulty confronting . trustees of • 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 1914-18 war this limitation was removed insofar as investments in war loans were concerned and the same course is now to be followed. Other amendments are purely machinery amendments of existing regulations.