LONDON BANKER

Grey River Argus, 30 November 1944, Page 2

LONDON BANKER

ON N.Z. EXCHANGE RATE. WARNING OF BRITISH MANUFACTURING COMPETITION. P.A. WELLINGTON, Nov. 29. Mr J. H. Lowrie, London Manager and Secretary of the National Bank of New Zealand, has arrived on a visit to the branches. He is Chairman of the British Overseas Banking Association and Vice-President of the British Bankers’ Association. He said there was more goodwill shown towards New Zealand at Home than to any other part of the British Empire. He had no hesitation in saying that this Dominion was the most popular in Britain. He said that great admiration existed in Britain for New Zealand’s war effort, also in other parts of the world. It had done much to enhance New Zealand’s reputation overseas. He said that there were many inquiries in regard to immigration, but until New Zealand settled its immigration policy he did not think much could be done about the matter. Moreover, if (Britain's policy of full employment for everyone was successful the need for emigration might not be so great. Referring to the question of exchange, he said there had been rumours of some alteration in the exchange rate. In all recent talks about post-war currency agreements the stabilisation of exchange had been emphasised as a desirable goal. It seemed to him, therefore, unlikely that there would be any alteration ■of the exchange rates Within the sterling area that for some time had been stabilised unless, of course, it became necessary through such an economic factor as maladjustment of prices. As far as he was aware, there was no such maladjustment between New Zealand prices and British price levels. It was, of course, very difficult to be dogmatic because price controls and subsidies made it hard to draw a fair compariMr Lowrie said British exporters would make a big effort to export to the New Zealand market as soon as they possibly could after the war. The importance of budding up the export trade again was. very fully realised in Britain. British exposers would make a great effort to ex pand their markets. In the early post-war years there should not.be much competition in the New Zealand market from British manufacturers, but after the transition period was over any secondary industry here would have to be made an economic unit if it were wanted to survive.