OUR EXCHANGE RATES.

Auckland Star, Volume LXI, Issue 230, 29 September 1930, Page 6

OUR EXCHANGE RATES.

Since Mt\ Forbes has arrived in London lie lias found time to discuss New Zealand exchange rates with City experts. Apparently our financial status is to some extent confused at Home with that of Australia, partly because the banks operating here have such close business relations' with Australia, partly becausc even City men do not always distinguish with sufficient clearness between the Commonwealth and the Dominion. The consequence is that Xew Zealand does not- get the benefit of its relatively favourable balance of trade, but has to pay virtually the. same rate on London as Australia. Of course, if gold were allowed to move freely between Xew Zealand and London, under normal conditions, the-rates of exchange would always tend to rectify themselves in accordance with the relation between export and import values. To secure thia advantage it would certainly seem to be desirable for New Zealand to remove without delay all the restrictions connected with our deviation from the gold standard during the war. But this is one of the important matters which Sir 0. Xiemeyer has been asked by our Government- to consider, and no doubt his report will deal exhaustively with the whole question.