EMPIRE’S MONEY

Dominion, Volume 27, Issue 35, 4 November 1933, Page 7

EMPIRE’S MONEY

Need for Co-ordination BRITISH POLICY Difficulties to be Faced NEW ZEALAND EXCHANGE By Telegraph.—Press Assn.—Copyright. (Received November 3, 11.30 p.m.) London, November 3. The "Financial News,” iu a leading article, says the unity and proper co-ordination of Empire currencies stands in the ioie.ront of British offic.al monetary policy, but the fact that Imperial exchanges are so much out of balance militates against serious attempts to create an appreciable co-ordination level. The Australian exchange still appears to be justified, but the same cannot be said of New Zealand, whose currency is seriously undervalued, though less so than the South African. Any co-operative policy would have (0 follow one of three main objectives. One would be the adjustment of internal conditions to the prevailing exchange rates. The second would be a gradual effort to bring the Australian and New Zealand exchanges to parity, the sentimental value of which would provide the strongest chance of enduring stability. The third would be an adjustment of rates so that they would honestly reflect the economic strength of the countries concerned. The leader adds: "There is no doubt the discount of the New Zealand pound is too wide, but New Zealand will not give up the idea that she must have the same discount as Australia.”