EXCHANGE A FACTOR

Evening Post, Volume CXVII, Issue 125, 29 May 1934, Page 10

EXCHANGE A FACTOR

-• A SYDNEY!-. OPINION r

I Winchcombe, CarEon^and Co., Sydney, in a review of the market, observes:—' "Despite' the recent' decline in the wool market, we 6ee no reason to be despond-

ent as to the future sale of the staple. We /do not expect to see prices on the advanced level.of last January, will be disappointed if rates are not on the range Ruling from last September to November." Alijwell-grown wools recently made' values in'^Sydney equal to Sectember, 1933; and^ wei?e keenly competed for at those prices." - HCe same' authority in its references to the"'German ."embargo remarks:— "Hopeful feelings are.;;liowever, held that trade will ncfJae undu^yj.'jhindered. The German Government-is-as anxious as any other Government' t6-£eep its.mills fully occup- - fed, .and textile and others concerned employed. 1\ A BRAKE ON BUSINESS.' '.^Existing conditions, arise from,,financial, causes. Money exchange has become pne'of the "world's major problems, putting* a brake on sales of goods in many countries and adding a monetary risk to traders', owing'to the danger of varying exchange rates.' The effect of exchange is " varying. In Australia it'has, helped to keep' returns more or less in tune with production costs. - GVeat .Britain, .Japan, and,« latterly, the United States have enjoyed better business,since, they went .off the gold basis. France and Germany boomed when the franc and the mark were depreciated in value, but that impetus* was temporary, arid financial' confusion eventually resulted for them. TBey are now on a .gold basis and exchange i ratesj also tariffs, have decreased their export business. Until some 'measure of international financial.stability is reached

the wool trade and all other trading activities cannot feel definitely assured as to the future 'of business." ' ••