EXCHANGE CONTROL

Wairarapa Times-Age, 14 July 1938, Page 8

EXCHANGE CONTROL

MORE RUMOURS CURRENT IN LONDON POSITION OF NEW ZEALAND FUNDS. RANKS TAKING UNOFFICIAL ACTION. LONDON. July 13. Fresh rumours detrimental to New Zealand are being circulated in the City. A statement by a New Zealand branch bank manager that applications for exchange involving large transactions would not be encouraged, as the bank was anxious to conserve its London funds, led to reports that an embargo on remittances from New Zealand was contemplated. The “Financial News” states that trade concerns consider that certain New Zealand banks are attempting to exercise a form of unofficial control over exchange transactions to prevent a flight of capital abroad. New Zealand bonds are affected by the rumours. NO ACTUAL EMBARGO ORDINARY BUSINESS NEEDS FULLY MET. SOME CONTROL OVER CAPITAL TRANSACTIONS. (By Telegraph—Press Association,) WELLINGTON, This Day. Inquiries in responsible quarters show that the position appears to be that ordinary business transactions for business purposes are being fully met, but as to capital transaction, although there is no actual embargo, it is necessary to conserve London funds for trade requirements. Applications are considered on their particular merits, each bank taking such action as it thinks suitable.