NEW ZEALAND EXCHANGE

Greymouth Evening Star, 27 June 1932, Page 5

NEW ZEALAND EXCHANGE

BANK OF N.S.W. TO PROFIT ? [BY CABLE —PRESS ASSN. —COPYRIGHT.] (Received June 27, 8 a.m.) LONDON, June 25. The “Sun” learns that fears respecting New Zealand exchange continue. The best informed circles consider that when the pool regulations are withdrawn, tho Bank of N.S.W. will force ether banks to raise the rate, although market conidtions do not justify it. British manufacturers, who supply 50 per of New Zealand’s imports, fear the increased exchange -will disastrously affect trade. This would mean that the demand.on London funds would be reduced, leaving the Bank of Now South Wales with huge credits available for sale in Australia, at a profit of up to 25 per cent, if New Zealand exchange is brought to the level of Australian.

AUSTRALIAN OPINION AUCKLAND, Julne 27. The Governor of the Commonwealth Bank, Mr. E. C. Riddle, on his way to Ottawa, to represent the Bank, discussed the exchange rate question. He said that in order to prevent a breakdown, the Bank had assumed •the responsibility in Australia by fixing the price at which it was prepared to buy from the trading banks or the public. This had prevented the collapse of the exchange at a time when it appeared inevitable. The bank took the view that it should be guided in fixing the rate entirely by the economic and financial position at the time. “If a high rate is desired in order to assist any particular section of the community, we take the view that this is a political matter and one entirely for government action and responsibility.”