HIGH EXCHANGE
A BRAKE ON TRADE
._•-. Sir Lehnon Raws, managing director of Imperial Chemical Industries (Aust.), Ltd., who arrived in Auckland by the Aorangi from Sydney yesterday, said that Australia, commercially, was, if anything, improving. There had been two good seasons and the early autumn rains promised- another.- people on the land were adjusting their expenditure to their reduced incomes, and i costs were, gradually coming down.
The greatest obstacle to a reduction in costs-has been the high rate of ex-change-between Australia and London, ■_ he said. It is a severe tax on raw materials. The trade balance,: however, •is much: more favourable than formerly - and there are prospects ,now of . a gradual lowering of the exchange, if the -attempts on the part of some folk to "fake"-the rate are frustrated. :
Sir Lennon said the exchange rate had risen on account of the loss of confidence in the country by the people, and capital waa being exported. With a new Commonwealth Government,"in power confidence : was returning, and the exchange rate would have to fall. What the farmer gained by high - exchange he lost J>y'higher, costs and increased taxation.
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Bibliographic details
Evening Post, Volume CXIII, Issue 103, 3 May 1932, Page 10
Word Count
187HIGH EXCHANGE Evening Post, Volume CXIII, Issue 103, 3 May 1932, Page 10
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