THE EXCHANGE DIFFICULTY.

Auckland Star, Volume LV, Issue 250, 21 October 1924, Page 8

THE EXCHANGE DIFFICULTY.

• GOVERNMENT TRANSFERS REFUSED. (Isy Telegraph.—Parliamentary Importer.) WELLINGTON, Monday. Answering the daily questions about the high rate of exchange, Mr. Massey mentioned in the House last night that the matter is not one in which the banks are making "big profits. To prove this he said the Bank of New Zealand had actually refused to transmit money from London to New Zealand for the Government, and it had to be done through private firms who made a business of it. The Government had been successful in getting money transferred, but if things got worse it was going to cost them more. Mr. Veitch (Wanganui) reminded the Premier that the last Imperial Conference tried to deal with the difficulty. Mr. Massey replied that it set up a committee of financial experts of undoubted standing. They made exhaustive report, but it all came back to the point that, until we got back to the gold standard it would never bo right. They thought we wou'd not have long to wait, but that was a year ago, and we were not back yet. Mr. Sykes (Mastorton): Where is the gold ? Mr. Massey: Don't be anxious. America has not got all of it. Mr. Parry (Auckland Central): About 800 millions. ifivi Massey * That is the difficulty. Whether we have enough gold to get back to that system. I am unable to say. It has not been done yet, and that is the trouble.