EXCHANGE RATE

Evening Post, Volume CXIII, Issue 31, 6 February 1932, Page 12

EXCHANGE RATE

IS IT A FAIR ONE?

BANKS CONSIDERING

[By Telegraph.—Press Association.)

CHRISTCHURCH, sth February.

"The banks have made a definite decision on the question of the exchange credits pool, maintaining that the exchange rate of 10 per cent, on the present balance in London is a fair rate. Whether they will agree that the rate should be raised is a matter for discussion, and no doubt during the coming week we shall see if any alteration can be made." This statement on tho exchange question was made tonight by the Prime Minister (the Right Hon. G. W. Forbes),

The question of the exchange rate and the points raised by, the representatives of the primary producers and of tho Associated Chambers of Commerce were still a matter for discussion between the banks and the Government, Mr. Forbes said. Tho question was whether the present exchange rate of 10 per cent, was a fair one. Representations made to the Government by those who thought this rate was not fair had been passed on to the banks, and a discussion was now proceeding on that angle.

Mr. Forbes emphasised that the height of the exchange was a matter to be decided by the banks and not by the Government, which had no control over the ruling rate. "The present rate of 10 per cent.," the Prime Minister said, "means that the Government, will be called upon to find an extra £1,200,000 not provided for in,the Budget. How that can be provided without more taxation is a difficulty to be considered. If the rate goes higher, an even greater sum must be found. With taxation standing as it is to-day every additional million that has to be raised in revenue is a matter for serious consideration."