EXCHANGE POOL

Evening Star, Issue 21036, 25 February 1932, Page 2

EXCHANGE POOL

CHAMBERS OF COMMERCE OPPOSED

fPi'ii United Puess Association.l WELLINGTON, February 24. A statement was issued to-day by the Associated Chambers of Commerce of New Zealand, explaining the attitude on the exchange credits’ pool. The association declares its opposition to the artificial “ pegging ” ot the exchange rate and affirms its opinion that there should be a return to. the free open market for exchange. It considers that the method chosen by the Government to extricate itself from the difficulty ot making overseas payments by commandeering the export income of the dominion in London is wrong in principle and inimical to the commercial and productive welfare of the dominion. It considers that simpler and better plans could have been devised than those forced on the community without consultation by Order in Council at short notice, and without adequate explanation or the machinery for working. The association is still of the opinion that there is no necessity for the present system, and no reason why the banks should insist that all export moneys should be remitted to New Zealand, and all moneys for import requirements remitted back to London, thereby duplicating a large proportion of the exchange business.