EXCHANGE

Grey River Argus, 17 June 1933, Page 4

EXCHANGE

MR COATES’ EXPLANATION. (Per Press Association). WELLINGTON, June 6. “From various references in the newspapers, there still appears to bo some misapprehension as to the Government’s exchange transaction, ‘ ‘stated the Minister of Finance, the Rt. Hon. Air Coates, to’day. “To make the position clear, I wish to state that the London exchange re* quiremtents of the Government for interest and other ordinary purposes for last financial year, were fully covered before the question of rais* ing the exchange rate arose. Thus the only additional expense for 1932* 33, arising out of the increase of the rate is £470,000, for the purchase of surplus exchange, under the banks indemnity (exchange) Act. The amount of £1,910,000 so purchased was the surplus to requirements for the last financial year, and the apparent contradiction contained in the recent statement of mine to the effect that funds taken oxer from the banks had not so far exceeded the amount needed to meet the Government’s ordinary interest requirements in London, is explained by the fact that this latter statement had reference to the current , financial year.” Exchange that has been purchased under the Bank’s In* demnity (Exchange) Act, will of course be used, where necessary, for meeting interest and. other normal reuirements in London, for obviouslv there is no need to make further remittances to London while funds are held in that centre. Needless to say as funds, purchased uflHer the ex* change idemnity arrangement, are so used, necessary adjustments will be made in public accounts.” *