STAGGERING BLOW

Evening Star, Issue 21315, 20 January 1933, Page 8

STAGGERING BLOW

INFLICTED OH LOGAL BODIES HARBOUR BOARD IN SERIOUS POSITIOH Many local, bodies throughout New; Zealand which have borrowed money on the London market to-day received a staggering blow by the announcement of the increased rate of exchange. One of the major public bodies seriously affected is the Otago Harbour Board, which is required to remit £30,000 annually to London as interest on loans. Furthermore, an immense problem faces the board, as over £700,000 of loans mature early next year and-the debentures will then have to be redeemed. , It is understood that at a committee meeting of the board last evening a resolution was carried that the protest against any proposal for increasing exchange, sent to the Government in November last, be repeated. The members were naturally astounded when, the Government's announcement was read this morning. A further telegram of strong protest was despatched during the day, to the Prime Minister. When interviewed, Mr John Loudon, chairman of the board, said he would speak only in general terms, but the effect of the increased exchange would be very serious on -the finances of the board, which had to remit to London approximately £30,000 annually as interest on loans. He was not then in a position to state exactly the monetory effect which the increase would have on the board, but it would certainly mean the recasting of the estimates of revenue and expenditure for the current year. Mr Loudon stated that he intended to convene a meeting of the board's Economies Committee to go into the whole question at the earlie'st possible date. "GOD DEFEND NEW ZEALAND' 1 CRISP SUMMING-UP GF POSITION "When I was coming to work this morning—or to all that is left of my work—l distinctly heard on somebody's radio or gramophone the strains of the dominion's inspiring anthem, ' God Defend New Zealand.' It is only through, that anthem that I feel able to express myself on the raising of the exchange rate," stated a business man, who wished to remain anonymous. " The matter seems to have got beyond the highest powers, in the" land, and we can. only look to Providence for the way; out." | WOOL BUYERS' POSITION ADDING DIFFERENCE TO PURCHASING LIMITS [Per United Press Association.] AUCKLAND, January 20. Exchange was the burning question at the wool sales' this morning, the buyers not having had time to get into touch with their principals. Bradford buyers may now procure wool valued at £IOO sterlmgiby'tha payinenfc of £75 in London. There was some talk of the brokers seeking an undertaking that the difference in the exchange rates would be added to the valuations. However, nothing was done, and the lots were offered without comment. The progress of the sale indicated generally that the buyers had added the difference to tbeir purchasing limits. STOCKS REACT SHARP RISE IN SECURITIES [Special to the ! Stab.'] AUCKLAND, January 20. As was expected, .the increase in ex« change rates was promptly reflected on. 'Change,' and there was a sharp rise in securities representing interests' that seem likely to benefit from the alteration. Thus Waihi, which had a late sale yesterday afternoon at 19s 3d, changed hands at this morning's call at 21s. Offers for Australian bank shares were raised. There were buyers for Commercials at 15s, while the rates for New Zealand banks were unchanged. Other Commonwealth securities reflected the change. Sellers raised their reserves for Goldsbrough, Morts to £1 4s 6d and for Colonial Sugars to £5 3s. Government stocks showed virtually no change. There were buyers for 4J- per cents, at £95 ss, and for 5£ per/cents, at £lOl. SIR HUGO HIRST'S VIEWS LONDON, January 19. (Received January 20, at 1.35 p.m.)' Sir Hugo Hirst (chairman of tha General Electrical Company), while ap« prehensively viewing any step increasing British manufacturers' difficulties,' agrees that New Zealand altered the exchange only after fully considering all the Government's interests. He realised that New Zealand would act in accordance with the spirit of Ottawa.