THE EXCHANGE POSITION.

Press, Volume LXVIII, Issue 20472, 16 February 1932, Page 10

THE EXCHANGE POSITION.

AUSTRALIAN COMMENT. The authorities in New -Zealand arc considering a proposal that the exchange rate between the Dominion and London Bhould bo increased to (he Australia" rate—buyer £123 and seller £125 10s f or | clegtiiphic transfers, observes a Melbourne paper. At present the New Zealand buying rate on London i = £llO and the selling rate £llO 10s. The rate between Australia and New Zealand is practically the difference between the Australian and New Zealand rates on London". Some Australian bankers have held the view for a considerable time that the rate on London should be the same for Australia aud New Zealrnd. The Dominion, however. hes preferred to keep its rate lower than that ruling in Australia. Decently the New Zealand Government took control of externa! exchange, and it is now difficult to transmit monpy from New Zealand to London excepting for approved purposes. If the step toward parity of exchange between the two countries is successful, Australian exporters to New Zealand will gain an advantage over exporters to that country in other parts of the world, because they will be relieved of .the present exchange between the Common wealth and t'lio Dominion. Primary producer* in New Zealand wiJf also benefit, but tbc higher rate, of exchange, ns in Australia, will be a burden on tbc general taxpayer. Mr A. C. Davidson,'general manager of the Bank of Xrw South Wales, and Professor Copland are interesting themselves in the matter dtir ing their visit to New Zealand.

TRADE TREATY NEW ZEALAND AND BELGIUM. EFFECT IN AUSTRALIA. The commercial 'treaty between New Zealand and ; Belgium/ which is now in operation, may have serious effects on the Australian export trade'with Belgium, states the Melbourne "Age."' The treaty ensures the most favoured treol.mcnt of both signatories. Australian products will not enjoy this privilege jn Belgium. It means that the advantage of any preferential duties already granted by Belgium under existing treaties with Canada, South Africa, South American countries, Denmark, and others will automatically benefit New Zealand, and be lo3t by Australia. The new schedule has been submitted for the approval of Parliament, aud it will be discussed shortly. There is, however, a strong movement in Belgium for much higher duties on frozen meat and butter. It would not be surprising to learn of a further, increase in the near future. In that' event countries with a commercial treaty such as that entered into between New Zealand at)d Belgium - would-'obtain a very helpful advantage over others.

BRITISH SHIPPING.

ROYAL MAIL LINE'S LOSSES. British shipping companies ijuve *ulI'ered very severely in- the last. two years, and very serious losses have boon sustained.. A Jurge proportion of the trade'of. the . «'orlti is carried by sea, and shipping ci>inp;uiics are therefore atfectetl by depression more quicidy than most cobimcrtiul uiulertakmyo. Accounts issued recently by the Koyul AJail Steaiu I'acket Company lor the year ended .December JJIsl, snow ;v on trading of £SC6,2iL) before provid--1112; for depreciation. '['he loss on voyages amounts to 1:371,GU2. "With s* credit balance of £lo'M:J3 brought lor-viai-d from the previous year, tlie deficit is reduced to fc tl i,'< SJO. The import of the directors' states that they recognise that tho book values of the fleet and investments in allied and subsidiary companies are in excess of their present value under existing conditions. The report" of tho directors states that a plan has teen approved by the Court lor the conduct of the business under :i moratorium irom its creditors. The plan provides tor a iirst specific charge over certain assets 111 favour of holders of 41 per cent, debenture 'stock, and a second specific charge on tho .same assets in favour of 5 per cent, debenture stockholder.-,. The plan uims particularly at-enabling the fleets of the various companies to be operated on the most economical lines and with the greatest possible cfficienev. The company has sold ceitain of "its assets, and reductions have been made in the pay and the numbers of tho staffs afloat and ashore; 110 iee= ire bein" waid to the directors. Capital of tlie company is £8,800.000, and debenture stocK to'_ the \:ilue #G 500.GC0 has been issued. I lie «eu is valued at £3,375,230, investment* in wholly owned subsidiary companies are valued at £0,iH6,000 and other in vestments in allied and other companies are £5,572,224.

FOREIGN EXCHANGES.

IBKITISIi Oi'FIUIAI. WIKEL.ESS./ KUOIjV, i'cbruai-y l ; -iThe following a*e the current ;aic3 uf esjimnco, couiyirca with those of Jrebruavy

PRICE OF SILVER. (B&1T1SR OFFICIAL WIRELESS ) RUGBY, February 13. Silver (pence per ounce):: — X'eb. I-. J-*cb. 13 <l. <l. . Spot . . . . 16ii. I<H Forward ... .. 10 5-8 lo'o-8

ana par: — i'av. Feb. 12. Feb. 13. Fsris, Sr. to •• .New Iojk, dol to Jil 124.21 •fa* 87 7-16 ■1.866 3.11 o A j Montreal, ciol. to XI 4.sua 3.4B 3.oy iirusseis, belgas to £1 33 24.C3 21.70 Geneva, i'i'. to £1 .. Amsterdam, ft to t* !■ -•5.220 17.05 17 11-- 0 12.107 8.52 S.o-j Milan, lire tj -1 33.43 CO 7-16 60S Berlin, icichmariicn 11 13-32 l-i.30 to £1 2X18 Stockholm, ki\ to £1 18.159 17J» 17* Copenhagen, '' r - to £L Oslo, fcr. to jEI 18.15a 18.159 18 3-16 18s ■IHi lt-4 Vienna, schgs. to J>L 31.5S5 32 32 (nom. ) (nouu Piaguo, lir. to £1 .. 161.OS 11G J16 Helsingiovs, marits to 03.23 20-.; 221 iiiidrid, pc.3ci.u3 to l-l 24.225 13 11-16 Lis'-on, esjudos to 1032 ' £1 •1.30 109 J All:rn3, dracb to JCjl 375 270 ;?63 377J Bucharest, lei to £ 1 816.6 575 llio do Janeiro, ;:c:ice • -1 3-1 <3 t<v milreis' 4.9S8 I 3-16 Buenos Aires, pence 39J to do). .. <7.377 39j Alor-lc-'deo pence to' 31 dol 31 31 Bombay, pence to 18 3-32 ■ rupee Shanghai, pence to 16 18 3-32 ta.e! !>i\ 22 29-32 I'ocr Kong, pence to dol. 21 17 3-16 17 13-32 Vokoiiavna, pence lo yen 24.81 2'l» ■US