GESTURE MISSING

Dominion, Volume 27, Issue 251, 20 July 1934, Page 10

GESTURE MISSING

Closer Parity With Sterling RATE OF EXCHANGE Chamber of Commerce Viewpoint “On first reading the statement issued by the Reserve Bank, it would appear that the commercial community could now have confidence in placing orders in Great Britain, but on going closer into the announcement there appears to be lacking that gesture for which so many interests in the Old Country have been looking; Hint is, a closer parity with sterling,” said Mr. D. J. McGowan,, chairman of the Wellington Chamber of Commerce, commenting on yesterday’s announcement that the bank would aim at retaining the rates unchanged for a long period unless there should be a marked alteration in existing conditions. “Although the Reserve Bank states that the rate will be stabilised for a long period, yet the announcement lacks any indication that the New Zealand pound will return to parity with sterling within a reasonable period. British industrialists, as an outcome of the Ottawa Agreement, and its concessions for the entry of New Zealand goods into Britain, have expressed many hopes for greater facilities for increased sales to New Zealand. While the recent concessions in the Customs tariff will be appreciated by these British industrialists, I have gained the impression that many have been looking for greater concessions comparable with the very generous treatment which Britain accords importations from New Zealand. “I am still of opinion that the artificial exchange position will leave a feeling of continued uncertainty in the minds of the business community, and the heavy costs involved will still fall on the shoulders of New Zealand taxpayers.” UNCERTAINTY OVER Manufacturers Pleased “Manufacturers are naturally pleased to have the position regarding exchange definitely stabilised,” said Mr. A. E. Mander, secretary of the New Zealand Manufacturers’ Federation. “The chief difficulty during the last year has been the uncertainty about the future exchange. Certainty was the chief thing wanted—now we have it.” “MOST DISCONCERTING” Auckland’s Disappointment By Telegraph.—Press Association.

Auckland, July 19.

Comment on the Reserve Bank’s exchange rate statement was made by the Mayor, Mr. G. W. Hutchison, who said he was extremely disappointed, as he had been looking forward to a reduction in the rate. It was most disconcerting to-learn that the burden carried by some of the larger local bodies would have to be carried for an Indefinite period. The Auckland City Council, including the water department, was paying £49,000 a year in exchange. The charge for water could not now be reduced. The president of the Auckland Chamber of Commerce, Mr. A. G. Lunn, expressed the opinion that the statement meant that the bank was warning people that it was useless to hold off their remittances as the exchange would remain unaltered until circumstances compelled the bank to alter it. It was obvious that if we had another successful exporting season the accumulation of funds in London would make retention of the high rate Impossible.