HIGH EXCHANGE.

Auckland Star, Volume LXV, Issue 45, 22 February 1934, Page 7

HIGH EXCHANGE.

British Complaint Against Australian Rate. TIME TOR REDUCTIONS. LONDON", February 21. The "Daily Express" financial correspondent comfnenting on tlie Australian conversion loan prospectus, eays the conversion operations' depreciation of the Australian pound', consequent 011 the locking up of large amounts of British money in Australia, has meant a very real sacrifice to a large body of investors. "We have given Australia substantial preferences in our market. This is as it should be. It has resulted in Australia now having a favourable trade balance around £40.000,000. Despite this, £100 is still fixed at £125 in Australian money. "The time is coming when the rate should be reduced. It means a big loss to British holders in Australian funds wishing to bring their money to London. It i* a definite handicap 011 British exports to Australia. "It is understood the Australian .authorities are anxious to make the position so strong that it can make big reductions in discount, but the better method would be gradual reductions of say 1 per cent every quarter, which would encourage business and make the currency movement less drastic." BURDEN OF RELIEF.

AUSTRALIA SPENDS £16,000,000. MELBOURNE, February 21. Unemployment relief in Australia in the last financial year cost £10,000.000, or ii'i 8/(1 per head of tlie entire population (men, women and children), according to a report presented to the Premiers' Conference by Mr. J. A. Lyons, Prime Minister. The conference decided that there should be complete co-operation between the IStatcs and the Commonwealth to prevent frauds.