HIGH RATE OF EXCHANGE

Greymouth Evening Star, 17 November 1931, Page 5

HIGH RATE OF EXCHANGE

REDUCTION IMMINENT WOOL-GROWERS' OPPOSITION [BY CABLE —PRESS ASSN. —COPYBIGHT.]

(Received November 17, 11.30 a.mj \ SYDNEY, November 17 The “Herald” says it is under stood that a meeting of the Commonwealth Bank Board will be held to-day to consider the rate of exchange between Australia and London. The “Telegraph” says that a serious position has arisen locally, owing to the uncertainty regarding the exchange movements, and yesterday the Commonwealth Bank was unwill-1 ing to buy, drafts on London at any price, except from its own customers. Persistent and apparently well founded rumours that the Commonwealth Bank Board is to review the Exchange position led to an impression of reduction from £l3l/10/- is imminent. Trading Banks to protect their own in terests naturally followed the prudent charge. They are willing to buy only exchange that they are in a position to resell. The President of the Graziers’ Association (Mr Tout) gaid he learned with grave concern that there, was a distinct possibility of the exchange rate being reduced in the near future. “The reduction in the rate now would be directly or indirectly reflected in the wool market, and would certainly act as a check to further rises in wool prices. Wool is yet selling below the cost of production, and any setback in the market would adversely affect all Australian industry and business.”