EXCHANGE SEQUEL

Dominion, Volume 26, Issue 102, 24 January 1933, Page 10

EXCHANGE SEQUEL

Problem of New Prices

LAST-MINUTE ORDERS

Traders’ Position Explained

Wellington importers had to use plenty of tact on Saturday morning in dealing with customers who wanted to apply the price lists ruling before the announcement of the rise in the rate of exchange on Friday. In some businesses, particularly in the iron and steel lines, the exchange has already affected practically everything in stock.

Friday produced a crop of rush orders, but even early clients frequents ly found that they were too late. By Saturday morning everybody in business was alive to the sweeping- influence of the exchange rate, and'many people were disappointed to learn that importers and retailers had advanced the prices of goods already in stock. The representative of a large Wellington firm which handles machinery and engineers’ and plumbers’ supplies, said yesterday, that there was no alternative but to increase prices immediately the exchange position was known. A considerable amount of business was done on consignment, he said, and unless the importer moved quicky he •would find he would have to pay on the basis of the increased exchange for goods which he had undertaken to deliver at rates ruling before the increase. Some people complained bit. terly on Saturday when they were refused quotations which were ruling earlier in the week. ' "We were given all sorts of reasons for the delay in ordering,” said a Wellington merchant. “Some people told us they had been trying to get us ou the telephone just before the exchange went up, and expressed the hope that we would make the deal retrospectiv< on this account. We had to turn a deaf ear to all the people who were wanting to do business on the old terms. When there is a drop in the rate of exchange we have got to pass it on immediately. In business -you have simply got to do that, and.you cannot afford to do it unless you have raised prices when the exchange rise was sprung on you. It is hardly fair to expect the vendor to lose at both ends.” Some local bodies were among'the fortunate early birds last week. The hint conveyed by the possible resignation of the Hon. W. Downie. Stewart gave stimulus to orders for iron and steal and electrical goods. One local body anticipated the exchange by ordering several hundreds of pounds worth of electric light lamps—goods which responded immediately to the rise in exchange. DELAYED PAYMENT Manufacturers Involved in Loss EFFECT OF EXCHANGE LIFT Tlie manager of a Wellington firm which manufactures silk underwear, mentioned an aspect of the exchange question to “The Dominion”- on. Saturday. He stated that his firm imported British fabric, payable in 90 days after delivery. On all the goods sold for the past three months, on which it is impossible to recover additional exchange, a serious loss would be incurred, he said, as these goods were actually sold and delivered, and the fabric would now have to be paid for in England, plus 15 per cent. ■ This meant a serious loss on all the Christmas trade, the most profitable season in the whole year, and would mean putting his firm in such a serious position that it may have to close up, and dismiss the 55 New Zealand girls employed making these goods. In ordinary justice, he declared, a clause should be added to the coming Exchange Bill granting a moratorium on all commitments for goods delivered or in transit prior to January 20, when high exchange became operative. PRICES & EXCHANGE Criticism from Hastings APPEAL TO GOVERNMENT By Telegraph—Press Association. Hasting. Jan. 23. At a largely-attended meeting o! business men at Hastings this morning a resolution expressing unanimous disapproval of the Government’s action in raising the rate of exchange was carried. “The hope for restoration of the prices of primary products,” stated the resolution, “is centred in the coming International Economic Conference. One means of accomplishing that purpose is stated to be a restoration of stable currencies and exchange. It is a grave responsibility for the Dominion to embark on a policy which is a direct negation to the negotiations now opening between the nations.” The resolution expressed regret at the Government’s sudden change of policy, and appeals to the Government to take all possible steps to free the exchange, allowing the London- rate to follow the natural course.