HIGH EXCHANGE RATES

Dominion, Volume 23, Issue 139, 8 March 1930, Page 11

HIGH EXCHANGE RATES

EFFECTS IN AUSTRALIA TRIPS ABROAD PREVENTED DIFFICULTY OF ADVERSE TRADE BALANCE (United Press Association.—By Electric Telegraph.—Copyright.) Sydney, March 7. It is now practically impossible for Australians to take holiday trips abroad. This amazing state of affairs is due to the high rate of London exchange and the decision of the Commonwealth Bank to prohibit the cashing of Commonwealth notes overseas. The difficulty has arisen by reason of Australia’s reduced exports of primary products, which are realised on in London and provide our oversea balances. These have become depleted, and the adverse balance has been increased by heavier imports. Moreover, a substantial increase in the official rates is likely in the near future. RESTRICTION OF CREDIT SHIPPING AFFECTED London, March 6. In the House of Commons, Major Glyn (C.) asked Mr. W. Lunn, Dominions Under-Secretary, whether he was aware of the position created in Australia as it affected British and other shipping and the free movement of British subjects domiciled in the United Kingdom and not resident in Australia by reason of the restriction of the normal movements of credit facilities by the Australian Government and also the banks. Mr. Lunn said that he understood that some difficulties had been experienced in commercial and shipping circles in consequence of the restriction of credit facilities by certain Australian banks, but, as he was at pre--sent advised, the matter did not appear one as to which representations could suitably be made to the Australian Government. AUSTRALIAN TAXATION HIGHER DUTIES LIKELY Canberra, March 7. Following a caucus meeting it was stated that there was no likelihood of further increases in direct taxation. Nevertheless, important amendments to the general taxation law are foreshadowed. Further tariff duties are also contemplated. Another taxation proposal the Government confirmed was an additional petrol tax of 2}d. per gallon. FEDERATION BLAMED SECESSION ADVOCATES Perth, March 7. Speaking at an election meeting, Mr. W. Richardson, M.L.A., said that he would advocate the secession of Western Australia from the Commonwealth. Sir James Mitchell, Leader of the Opposition, commenting on the petrol tax, said : ‘‘That is Federation for you. Let us get out as soon as we can.” N.S.W. FACTORIES Sydney, March 7. The number of New South Wales factories last year increased by 99 to 8641; employees by 2463 to 185,123; value of production by £1,750,000 to £73,500,000. Wages amounted to over £38,500,000.