EXCHANGE RATE.

Press, Volume LVI, Issue 16841, 22 May 1920, Page 10

EXCHANGE RATE.

A BUSINESS MAN'S VIEWS. ' The statement made by Sir Joseph Ward at Wellington this week, ftt a farewell tendered him by the Commercial Travellers' Club in Wellington, was mentioned by a "Press" reporter yesterday, to the i managing director of a large commercial house. Sir Joseph stated that he intended, while in America and England, to discuss the question of the adverse exchange rate, particularly as it afTe ted the Dominion. Ho advocated New Zealand banking institutions establishing branches in the United States, and American banks being permitted to establish branches in this country.. | "I think Sir Joseph is quite right in •what he advocates," i.o sta.e.l, '"TJiero is no doubt that a direct rate of exchange between New Zealand and the United States is needed, and I know that something on these lines has already been suggested to its London office by a large banking concern operating in the Dominion." He con- ' sidered it likelv that such would take place in tho future. At' present, he pointed out, the British Government was making about 30 per ccnt. out of New Zealand in the matter of exchange on the Dominion produce sent to - America. The New Zealand produce going to the States was helping all the time to raise the value of the British sovereign. Although our produce was sent direct to Boston and New York, it y r ** through the British Government's hands. He was glad to see that Sir Joseph was moving in tne matter, because as soon as the corrrnandeer was lifted the question would be a subject of the gravest importance to New Zealand. If a direct rate of exchange between New Zealand and America could be established, it would mean that our produce would be keenly competed for by firms in the States, who wished to export their own manufactures with a view to balancing their exchange. Ho was convinced thnt there was a large and profitable market in the States for all manner of New Zealand products, foodstuffs particularly. Owing, to the present advene rate of exchange an English £ in .Amc?r3?n to-day was worth only about 3SO dollars, or, in other b words, the value of a dollar had risen 3 from 4s 2d to 5s 4d. Continuing, he 1 pointed nut that with the lifting of the commandeer,' a trading concern in,°t Rendin S> s"y, £5000 to the United Stales to pay for American goods, would send this amount of produce, the- concern thus actfrfg as its i n r ' Although a direct rate of exchange Tw»twoen the and America would footer trade between tho two countries, he did not think the r former banking people would agree to J this, ex-ent at the point of the havonet { as it were, owing to the fact that they . were mostly controlled from London