EXCHANGE PROBLEM

Dominion, Volume 30, Issue 152, 24 March 1937, Page 14

EXCHANGE PROBLEM

An Equalisation Fund

THE AUSTRALIAN POUND

The general manager of the Bank of New South Wales (Mr. A. C. Davidson), in an address at Sydney last Thursday to members of the Commonwealth Institute of Accountants, said that there was no reason why an exchange equalisation fund could not be effectively employed to support the Australian pound. Snell a fund, lie said, was an essential instrument of management of currencies. It could be used to neutralise day-to-day HuctUations in exchanges, particularly those due Io speculation. \lr Davidson said that the gold standard was comparatively modern, and recent rapid changes bad already made it obsolete. Mr. Davidson, in explaining the relations between the world’s currencies, discussed the history of banking anil the I’oreiirn exchanges. He said that the world was not fully “on gold” until after the Franco-Prussian War, anil that the gold standard lasted until the outbreak of the World War. After the war an attempt, led by Britain, was made to return to "old, 'but, with the coming of the depression, one country after another found it impossible to maintain the standard. By the time of the downfall of the “gold bloc” late in 1936, all important currencies bad become ''managed.” It was a mistake, Mr. Davidson said, to consider that the gold standard was fully automatic. The change to managed currencies was merely a change from limited and restricted control to more enlightened and efficient management. The cardinal difference between the gold standard and a managed currency system was that a managed system was directed toward maintaining internal stability regardless of exchange movements. The aim of management was to keep a balance in the internal economy, but that aim was limited by considerations of confidence in the currency. The experience of France and other- countries, which, until recently, had remained faithful to gold, showed that it was impossible to sustain the burden of business losses and unemployment caused by rigidity of exchange rates. HIGH PRICED LAND

Prudential’s Sydney Purchase

Last week the Prudential Assurance Co., Ltd., completed the purchase from the Sydney City Council of the land in Martin Place between Castlereagli and Elizabeth Streets for £149,500, which works out at exactly £lOOO for each foot of frontage to Martin Place. The land has a frontage of about 80 feet to Elizabeth Street, and 60 feet to Castlereagh Street. . This is the highest price realised fertile Martin Place residues. The land, sold comprised lots 1,2 and 3 of the residues left in the hands of the city council after the completion of Martin Place resumption. At the first auction sale at which these residues were offered in April, 1934, the Rural Bank paid for the site on which its building now stands £625 a foot, and litter lots 4 and 5, between Elizabeth Street and Phillip Street, wore sold to the Australian Provincial Assurance Association Ltd. for £675 a foot. The resumptions for the Martin Place improvement cost the city council altogether £1,336.829, and the sales of residue lands, including last week’s sale, have yielded £327,000. It is the intention of the Prudential Assurance Co., Ltd., to built its head office for Australia on the site just purchased. The company erected its own building in Wellington and another in Johannesburg to serve as its headquarters in New Zealand and South Africa respectively. The Prudential Assurance Co. was formed in England in 184 S, and its total assets now exceed £315,000.000. It first extended its operations to Australia and New Zealand in 1931.

FRUIT AND VEGETABLES

Wellington Market Prices

Prices of fruit, vegetables and other produce in the Wellington markets this week are quoted by Thompson Bros. Ltd., George Thomas and Co., Ltd., W. Burbidge and Co., Ltd.. D. Bowie and Co , Ltd., Townsend and Paul Ltd. and Laery and Co.. Ltd., as follows: — Apples: New season’s, cookers, 2/6 to 7/- per bushel ease; Cox’s Orange, 6/to 11/6; Jonathans. 4/- to 5/-; Delicious, 3/6 to 7/3. Passion fruit, 5/- to 8/- per half-case.

Peaches: Choice dessert, 6/- to 8/9 per half-ease; cookers, 4/- to 5/-. Pears: Winter Coles, 4/6 to 6/- per three-quarter case; L.8.J., 10/- to 13/6; cookers, 4/- to 5/-. Quinces, 7/- to 9/- a bushel.

Nectarines: 5/- to 8/- per half-ease. Cucumt't’s: Outside, 12/- to 19/- per case.

Lemons; Choice, 14/- to 18/- a bushel; others, 6/- to 10/-. Kuuiertts: J/- to 6/- per sttgai-bag. Green peas, 3/- to 15/6 per sack. Tomatoes, local coloured. 1/6 to 3/- per halfease; ripe, 2/6 to 4/6. Marrows, 1/6 to 2/6 per case. Cape gooseberries: 4/- to 5/- per half, case. Hothouse grapes, 6Jd. to 1/S a lb. Beans: 3/- to 16/3 a case. Pie melons, 5/- to 7/- a sack. Potatoes, 4/- to 7/- a cwt. Pumpkins. 5/- to 9/- a sack. Cauliflowers, 3/6 to 9/- a sack. Lettuce, 1/6 to 7/- per case. Spinach, 1/6 to 4/- petcase.

Swedes: 2/- to 3/6 per case. Carrots, 6/- to 9/3 per case. Parsnips, 3/. to 6/per case. Beetroot, 1/- to 2/6 per case. Celery, 2<l. to 2/- per bunch. Leeks, 6d. to 9d. per bunch. Cabbage, 9(1. to 2/per ease. Onions. Pukekohe, 4/- to 4/6 per sugar-bag. Rhubarb, 3/- to 8/- per dozen bunches. Eggs: 1/9 to 1/10 per dozen, Rimu Gold Dredge Return By Telegraph—Press Association. Hokitika, March 23. The Rimu dredge return for 133 hours and 48,530 cubic yards was 254.950 z. Dividends Due

Broken Hill North—l/0 a share Mar. 24 N.Z. Guarantee Corpn.—int., IJd. per share Mar. 24 Broken Hill South—Quarterly, 1/- per share Mar. 24 Myer Emporium—int., 3 p.e. Mar. 24 Tooheys. Ltd—int., 41 p.e. .. Mar. 25 Argo Gold Dredge—ld. per share Mar. 25 Dunlop Perdriau —Int., pref. 5 p.e., ord. 3 p.e Mar, 31 British Tobacco—Quarterly, 2 p.e Mar. 31 Hume Pipe—int., 21 p.e. .... Mar. 31 General Industries—final, 71 p.e Mar. 31 United Building (Chch) —final 21 p.e Mar. 31 Bond’s Hosiery (N.Z..1, 5 p.e. Mar. 31 Mossy Creek Gold —Cd. per share Mar. 31 Morris Hedstrom —pref., halfyearly, 3 p.e Mar. 3.1 Dominion Rubber—final. 31 p.e Mar. — Bank of Australasia —Final, 9 p.e. p.a Apr. 2 Death and Co.—int., 21- p.e. Apr. 2 Howard Smith —Pref., quarterly, 14 p.e Apr. G N.Z. Drug—final, 4j p.e Apr. G Woolworths, Ltd. (Sydney)— final, 61 p.e., making 12J p.e. for year Apr. 9 Milne and Choyee—int., pref., 3 p.e.; B pref. 31 p.e., ord. and deb. 2 p.e Apr. 10 Amalgamated Wireless —int,, <5 p.e Apr. 12 Ynrra Falls —inj., 5 p.e Apr. 15 Woolworths (N.Z.), int., pref.. 41 p.e Apr. 15 G. J. Coles—quarterly, 9d. per share •=-.•••• •• a • • Apr, 15