FUNDS REFUSED

Wairarapa Times-Age, 9 June 1939, Page 6

FUNDS REFUSED

FOR PURCHASE OF OVERSEA GOODS REPORTED ATTITUDE OF BANKS. TARANAKI EXPERIENCE. (By Telegraph—Press Association.) NEW PLYMOUTH. June 8. A flat refusal meantime to provide funds for the purchase of overseas goods authorised by second period import licences is being made by the trading banks in New Zealand. This position was discovered today by two large importers, who stated that the effect to them was serious. The banks are not issuing credit for the second period goods, in spite of ample licences held by importers, they state. ' This means that payment cannot be made for goods already ordered. and possibly ready for shipment; and as the shippers are not prepared to take the risk of credit being held up in New Zealand indefinitely, the goods are not being forwarded. It is considered that some goods may already be on the water to arrive in the the second period.

In the past the trading banks have been providing credit relative to the permits that the Reserve Bank has granted. It is believed that the trading banks have not been reimbursed for all the first period goods, so that they are not prepared to take the risk for the second, till the position is clarified. It is understood that there is no differentiation shown between one trade and another, credit being issued to no one.

The fact that importing firms have ample funds in New Zealand makes no difference. They still cannot secure the finance they require overseas to take advantage of their import licences.

A suggestion has been made in one quarter that the banks’ refusal will continue till Mr Nash has completed his mission to London, and provided adequate sterling funds. DENIAL IN LONDON NO GENERAL HOLD-UP OF FUNDS. ACCORDING TO BANKING AUTHORITIES. By Telegraph—Press Association—Copyright. (Received This Day, 9.45 a.m.) LONDON, June 8. New Zealand banking circles in London deny reports from New Zealand, that they are not supplying funds for purchase of overseas goods, and repudiate the implied suggestion that they are bringing improper pressure on the Government. Funds may have been withheld in special cases, pending investigation, but there is no general holdup.