EXCHANGE AND WOOL

Evening Post, Volume CXV, Issue 138, 14 June 1933, Page 14

EXCHANGE AND WOOL

PRICES IN TERMS OF GOLD

At this, time last year the value of I'rencb. ■■currency was approximately 93 francs: to the .English £. Latterly the franc has been quoted at 85 to 86 to }he £.' portion of the rise in wool values experienced compared with the period quoted,.- isy therefore, caused by rates .of exchange assisting prices in Australian currency. Tho par value of the franc is 324 to the £, and at present, with New. Zealand and England oft' the gold standard, the New Zealand £ is only worth about 69 francs. Exchange is therefore a large item in wool prices. No jiei-sou can accurately estimate what changes' will • occur in rates of exchange in the future. The "Sydney Morning Herald," which has been, going into the matter, believes it possible that the results of efforts to raise price levels for itonimqditiea in all countries will act as an antidote to exchange variations. "That would be a desirable development. In considering the future possible Value of wool in Australian currency it is, however, advisable that growers should jiot overlook the exchange influence on local prices. The general trend of world opinion is towards a reduction in tariff barriers between the various countries in order to facjlitate- international trade. 11 united, action is taken in tlmt regard efforts are probable to bring exchange dates at least closer to normal, as abnormal exchanges are tariff-like in their effects; •' • ■ "The-hope cau only be expressed'that tho gold parity of wool prices will be decidedly above current levels before such fiction is successfully undertaken. Exact figures are not available, owing to the absence of auctions, but in terms of goldthe average price of Australian wool is J3V£d per potuuL Considerable advances are consequently necessary before prices in terms'" of gold can be satisfactory tor sheep-: owners in the Commonwealth."

Lord Walcelield has sugsested a "t?st year" fof taxation relief. "Unorthodox as it may be," lib holds, "I am of the opinion that an experimental year of taxation relief could now be given serious consideration."