FOREIGN EXCHANGE

Gisborne Times, Volume LX, Issue 9801, 10 May 1924, Page 4

FOREIGN EXCHANGE

HOW IT HITS THE FARMERS. FOLDING. M-y 9. At the annual meeting of the Dairy Farmers’ Union to-dav the chairman, (Mr- It. Cobbe) said that dairy farm-, ers are apt to think that matters like foreign exchange are but of their province. But lie would like to si-uv," how this affected every farmer in the Dominion. Up to February, 1922, demand drafts on London stood at par. In that month the rate was ss. .-It went to 10s in April, to 15s in May. to 25s in September, 35s m November, and in March. 1924, went co 40s per LI 00. Tliev were told that exchange rates were based on the fluctuating trade balances. But a close survey of the trade position during 1922 'did not warrant the exchange fluctuations from par to 35s in ten months. The speaker suggested that it was due to manipulations by the banking authorities. The dairy farmer who produced £IOOO worth or butterfat raid to the banks to-day £2O in exchange and £lO of this amount sit least was an unjustified charge for which lie received nothing in the shape nf credit or monetary facilities. The Dominion exported goods valued at fi.ftv millions this year and the ex-, change cost close on one million sterling. "Half tliis unfair charge was on the producers. A partial solution of the "exchange prob’em was offered to the Empire Economic Conference by Darling’s ‘ Empire Currency Bill Scheme, hurt the heavy hand of the financier seemed to have damped the enthusiasm of the oversees Premiers for the scheme. —P.A