"ONE-WAY TRAFFIC."

Auckland Star, Volume LXII, Issue 18, 22 January 1931, Page 9

"ONE-WAY TRAFFIC."

TRADE WITH AUSTRALIA.

POSITION OF EXCHANGE.

DO. N.Z. FARMERS BENEFIT?

Reference to the Australian exchange situation was made at this mOrning s meeting of the executive of the Auckland Chamber of Commerce, when a letter on the subject written by the seci-etary, Dr. E. P. Neale, to the Associated Chambers of Commerce, Wellington, was read.

Dr. Neale stated that the recent adjustment of the exchanges between Australia and New ,Zealand was, in effect, an acknowledgment by the banks of the fact that the Australian pound note had become somewhat heavily depreciated as co inpared with the New Zealand pound note, and even more so as compared with the English pound note, The Australian pound note had got into a condition somewhat similar to that of the depreciated currencies of Europe a decade back, though, in the case of Australia, the depreciation had not gone so far as it did in Franc© and other countries following the Great War. ,It was probable with Australia, however, that distrust abroad of the country's financial position had overrun the facts. To meet this situation most countries introduced legislation to enable an "exchange dumping duty" to be imposed against goods from countries with depreciating currencies. Circumstances now seemed to exist pointing towards the necessity to impose such a duty against Australia, The Government was understood to be negotiating a now reciprocal tariff with Australia, and perhaps the Associated Chambers might think fit to urge the desirability of including in any such tariff agreement a provision for the adjustment of duties in the event of depreciation of the currency of one of the parties to the agreement.,

Mr. A. A, Ross said he did not approve of the suggestion contained in the letter, as the position of the Australian exchange was only temporary. The chairman, Mr. Malcolm Stewart: I hope you are right. ' He added that Australian grain was being shipped to New Zealand with the idea of it realising a good price in. this country. Mr. Ross said it did not always do harm to be supplied with cheap goods. Farmers were now able to get cheaper bran and pollard than formerly because of the lower values in Australia.

Mr. Stewart said that they were getr ting that advantage before the change rose to such an extent. Mr. Ross had said that the position was only temporary, but the present tariff with Australia required six months' notice of any alteration. Australia was buying nothing from the Dominion, and the Dominion's exports were going right off. There was' need for a reciprocal treaty with Australia. Now, however, there was one-way traffic entirely. The Commonwealth was shipping barley f.Q.b, at 1/8 and 1/9 a bushel.

Approval, was ultimately lent to the secretary's letter.