EXCHANGE SERVICES

Evening Star, Issue 21054, 17 March 1932, Page 15

EXCHANGE SERVICES

THE BANK CHARGES fP»n United Press Aseocut:om.l WELLINGTON, Alarcli 16. Air W. J. Poison (Stratford) asked in the House of Representatives whether the Government would make representations to the banks with a view to obtaining a reduction in the charges for the service of exchange in conformity with the reduction in the London bank rate. Ho said that the Australian hanks had reduced their charges by 2s 6d per cent, as a result of the fall in the bank rate. The Prime Alinister (Right Hon. G. AY. Forbes) replied that representations had a circa dy been made to the banks and the matter was under consideration. Air J. O’Brien (AYcstland) asked whether in view of the fact that the banks now had complete control of exchange the Government would request them to bring the rate between the dominion and Australia as closely as possible to par. He said the rate of exchange between New' Zealand and Australia was seriously affecting the dominion’s coal and timber industries in so far as it favoured the importation of coal into the dominion and detrimentally affected Now- Zealand’s export of timber to Australia. He declared that if the exchange rate was brought to par it would have the effect of providing employment for a considerable' number of men in these two industries. Air Forbes replied that the exchange rates between Australia and New' Zealand w'ere determined by the respective rates of exchange, Australia on London and New Zealand on London. If the rates between Australia and New r Zealand were brought down to about par the Australians would inevitably obtain large amounts of exchange on London through New Zealand to the detriment of the dominion’s resources in London.

Jr O’Brien: The majority of the hanks are prepared to bring the rate down to about par. Air Forbes said that previous efforts to maintain a lower rate for trading transactions had been futile. An arrangement had been made whereby some advantage would bo given to the New Zealand exporter of timber, but it had broken down because it bad been found impossible to maintain a special rate of that description. Air O’Brien; I am assured that if pressure is brought to bear on the banks they will bring the rate down to par. Air Forbes; 1 will raise the question with the banks.