THE DROP IN THE EXCHANGE

Dominion, Volume 13, Issue 70, 16 December 1919, Page 9

THE DROP IN THE EXCHANGE

CAUSES AND CUKE EXAMINED. (Bee. December 15, 5.5 1 p.m.) London, Dece:nb<:r 14. The Committee on Currency and Foreign Ex'chaiiges, in its final reporl, ijtates that the depreciation in the sterling exchange on - New York - i.s largely dus to the expanded state l of credit in Britain. "The lai'fje payments re have to make to America for necessary imports," says the Committee,' "make it essential that we should secure payment in cash for as large a proportion of our exports as possible. Wo therefore recommend that we give preference to e'xports to countries-able to pay in the ordinary course of trade. The first eSsentiels to the recovery of the exchange are'■ in 7 creased production, cessation of Government borrowings, and decreased expenditure by the.Goveriiment and individuals." —Aus.-N.Z. Cable Assn. • FRANCE TAXING FOKJfIIUN , ■ TELEGRAMS. ■ (Rec. December 15, -5.5 p.m.), Paris, December 14. With a view to covering the loss on the-rate of exchange, the French Government henceforth .is taxing foreign telegraips at sixty-five centimes' per franc. -Aus.-N.Z. Cable Assn. RECORD PRICE:FOB FINK GOLD., (Rec. December 15, 5.5 p.m.) , London,' December 14. - Fine'gold is quoted at -Ills. ltd.-per ounce, a record since the Napoleonic Wars, The advance is. largely due to India buying keenly; following' on the ■Government raisin?: the price c-f the rupee to HSd.—Aus.-N.Z. Cable Assn.