The Franklin Times PUBLISHED EVERY MONDAY, WEDNESDAY AND FRIDAY AFTERNOON. WEDNESDAY, JANUARY 20, 1932. NEW ZEALAND EXCHANGE.

Franklin Times, Volume XXII, Issue 8, 20 January 1932, Page 4

The Franklin Times PUBLISHED EVERY MONDAY, WEDNESDAY AND FRIDAY AFTERNOON.

WEDNESDAY, JANUARY 20, 1932. NEW ZEALAND EXCHANGE.

Office and Works:

ROULSTON STREET, PUKEKOIIE. ’Phone No. 2. P.O. Box 14

“We noming extenuate nor aughl

set clown in maliee.’

WHILE the dairy• interests in this Dominion are making representations to the Government to relieve them of the disabilities imposed on the industry by the effects of the credit pooling system, it is interesting lo republish the comment of the Brisbane Courier on the New Zealand exchange position:—“New Zealand and South Africa have followed the ex-

ample of Australia in the pooling of exchange resources in London to meet their respective overseas commitments.

Delm 1 * othe South African method are not available, but New Zealand is getting, as Australia got, her assistance from the banks. The Dominion is, however, going beyond the Commonwealth plan-by arranging for the banks a monopoly of the exchange business in return for the services given. That was discussed in Ausiralia as an equitable basis for the pooling, and as some small compensation for the loss of business which the hanks had to face in carrying the Governments over a very critical period: hut the banks had no real desire for a monopoly, and, as a fact, preferred that the open marked should he continued. New Zealand, on the other hand, will take into a pool all exchange credits arising from the sale of exports abroad. To that end exports as from January 1 will be licensed, and the resources of the banks will be used to meet the Government’s requirements. New Zealand’s alternative would be a loan to cover the overseas commitments, but that would not be practicable on a long term and at a reasonable interest rate. The way of the Dominion is made lighter by the proved practicability of the pooling method by the Australian banks, and perhaps it would have been better had New Zealand kept clear, as this country has done of a monopoly of export realisations.”