HIGH EXCHANGE

Evening Post, Volume CXVI, Issue 31, 5 August 1933, Page 13

HIGH EXCHANGE

EFFECTS NOW BEING FELT

It is not surprising, remarks the "New; Zealand Draper, Clothier, and- Boot Retailer," that the whole question >of exchange inflation is being - revived, and there is a widespread suggestion that ex-, change should be freed again' from arti-> ficial manipulation or political interference, and allowed to reach its normal and natural level as, determined by cur balances of trade. Such talk has again created imeertaintly in tradei circles and added to that feeling of insecurity in business dealings which, we referred to earlier, and which is such an obstacle in the -road to recovery. . ; "The effects of this exchange, inflation six months ago are only just beginning to be known here, and among no section of our business community is this uncertainty about it being felt more than among our retailers, especially, where business conditions necessitate buying a long time ahead of delivery. Unless we can purchase goods for the changing seasons in . good time and with confidence/that price 3 are not likely to vary violently, our business organisation is upset. Buyers become timid and the consequence is that stocks in.' both retail and wholesale establishments are held at a. minimum, and trade suffers from our inability to attract customers by as wide a range of goods , aa should be freely available. _ < "The removal of this uncertainty. and insecurity would do.much to assist towards better business." ....