EXCHANGE RATES

Gisborne Times, Volume LXXIII, Issue 11838, 20 January 1933, Page 5

EXCHANGE RATES

RAISED TO, £125 ON LONDON. government REQUESTS BANKS TO MAKE INCREASE. “IN BEST INTERESTS OF THE COUNTRY*.’' RESPONSIBILITY RESTS WITH GOVERNMENT. (Press Association.. WELLINGTON, Jan. 19. The following! statement was issued by the Associated Banks after a conference with Cabinet: “The Government has decided, after examining all alternative methods of. relief to the general situation, that it is completely satisfied that the raising of (the London rate of exchange to a basis of telegraphic transfer selling £125 New Zealand equals £IOO London is in the interests of the country. The banks have strongly protested against the Governmental fixation of the rate, but the Government has informed them that it must persevere in the matter. Therefore on the strong representations of the Government and on its full responsibility, the banks are reluctantly compelled to co-operate with the Government in giving effect to its decision. NEW ZEALAND ON LONDON.

The following rates are effective on and after January 20, 1933:

Buying (basis £IOO London) demand £124; 30 days, £123 15s; GO days, £123 10s; 90 days, £123 ss; lio days, £123.

Selling (basis £IOO London) T.T. £125; demand £124 17s Gd; 30 days £124 15s; 60 days, £124 12s fid; 90 days £124 10s. NEW ZEALAND ON AUSTRALIA. The following rates are effective on and after January 20, 1933: Buying (basis £IOO New Zealand), demand £IOO 10s. Selling (basis £IOO New Zealand): demand £99 15s. LONDON WARNING ON HIGHER EXCHANGE. FARMERS ONLY BENEFIT FOR TIME. MORAL BREACH OF OTTAWA PACTS. (U.P.A. by Elec. Tel. Copyright) (Received Jan. 19, 1 p.m.) LONDON, Jan. 19. The Financial News, discussing the Hon. W. Downie Siewari’s resignation, says; “It is significant that all along he opposed any arbitrary tampering with exchange. If the Government has decided that, the rate ought to be raised in order to help the farmers, they will find themselves faced with many new and difficult problems. If a change in the rate is imposed on the banks, ihe Government will find, sooner or later that they will be obliged to undertake the purchase from

them of any surplus exchange, as did the Commonwealth Bank a year ago. Moreover, the primary producers will only benefit for a time. Ultimately domestic prices must rise, and, moreover, the increase will be a moral breach of the Ottawa agreements.” PREMIER STILL RETICENT COALITION CAUCUS ON TUESDAY (Press Association i WELLINGTON, Jan. 19. The Prime Minister, Air Forbes, is observing a strict policy of reticence. Ho reiterated yesterday’s statement that he had no comment to make regarding the political situation. Air Forhes informed a. reporter that a caucus of the. Coalition party would he held on Tuesday, when there would be a, general discussion on the Government’s policy.