HANDS FORCED.

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 8

HANDS FORCED.

POSITION OF BANKS, i GOVERNMENT RESPONSIBLE. "RELUCTANT TO CO-OPERATE" (By Telegraph.—Press Association.) WELLINGTON, Thursday. The following statement was issued by the Associated Banks after a conference with Cabinet:— The Government has decided, after examining all alternative methods of relief to the general situation, that it is completely satisfied that raising of the London rate of exchange to a basis of .telegraphic transfer selling £125 New Zealand equals £100 London is in the interests, of the .country. The banks have. strongly protested against Governmental fixation of the ratey.'hut the - Government has informed tliem. - ' • that it jnust 1 persevere in the matter. , . ! Therefore, and on the strong representations of the Government and on its full responsibility, the banks are reluctantly compelled to co-operate with the Government in giving effect to its decision. • t The following rates are effective on and after January 20, 1933: — NEW ZEALAND ON LONDON (Basis of £100 London). Buying. Selling. On demand . . £124 O 0 £124 17 6 30 davs 123 15 0 124 15 0 60 days 123 10 0 124 12 6 00 days 123 5 0 124 10 0 120 days i... 123 0 0 — Telegraphic transfer ... *—*- 125 0 0 NEW ZEALAND ON AUSTRALIA (Basis of £100 New Zealand). ... . . - Buying. Selling. Ob demand . £100 10 .0 £99 15 0