EXTERNAL TRADE
EXCHANGE FACTOR There is a tendency in many ijuarters when considering the economic outlook in New Zealand to concentrate attention unduly on ,the. published iigures relating to the excess of exports over imports, remarks the Auckland Chamber of Commerce Journal. "It is true that this series is valuable as a general index, but caution in dealing with it is necessary. At present the New Zealand-London exchanges are some 25 per cent, adverse to New Zealand, while the exchanges' of the gold standard countries are in turn adverse to London a fluctuating but considerable amount. It must be remembered that the official statistics of imports show values in country of origin converted (where necessary) to a sterling basis. The fact that the values of exports are expressed in New Zealand pounds and of imports (even from gold standard countries), except Australia, in English pounds, plus 10 per- cent, to cover cost of freight, insurance, etc., on the.voyage to New Zealand but without any addition whatever by way of allowance for the-effects of an 'adverse' exchange, whereby £125 in New Zealand currency, equals £100 sterling, is apt to exaggerate the amount of an apparent 'favourable' balance of trade at a time when exchanges have moved against New Zealand." ' " ' '
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Bibliographic details
Evening Post, Volume CXV, Issue 144, 21 June 1933, Page 12
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208EXTERNAL TRADE Evening Post, Volume CXV, Issue 144, 21 June 1933, Page 12
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