EXCHANGE POSITION.

Hawera Star, Volume XLVIII, 19 July 1924, Page 12

EXCHANGE POSITION.

MR THEODORE’S VIEWS. The Premier of Queensland (Mr Theodore), who arrived in Sydney recently, predicted that the present difficult position of exchanges between and Australia would improve shortly, although this was not the general opinion held in finaneial circles in London. “But you must take into consideration,” ho continued, "that one of the factors of the difficult position has been removed: This was the credits accumulated bv Rawra. The Bawra transactions have ceased, and consequently there should be an easing of the position. Of course, the borrowing of funds in excess of our requirements to meet London obligations enhanced the difficulty, but, on the other hand, the present adverse trade balance against Australia should ease the position. The increasing of the Australian note issue would possibly bring about an inflation difficulty, which, no doubt, the Notes Board is anxious to avoid! On the other hand, the Notes Board would be wise to consider elasticity in the currency to meet the fluctuating requirements of Australian industry to enable facilities to be provided for the removal ! of the wheat crop and the wool clip. ’ ’

Referring to industrial conditions in Great Britain, Mr Theodore said that, although unemployment had declined, the situation was gtill serious. There were a million men registered as being unemployed. There had, however, been a marked improvement recently, and this showed that the accession of a British Labour Government did not have an adverse effect upon trade and industry. His impression of the members of the Ministry was that they were very capable administrators, faced with an enormous task, but carrying it through in a very admirable way. No one in London to-day Would suggest that Labour was not fit to govern. Everyone recognised that the meinbers or the Labour Ministry were men of intellect, and it had become the fashion in London t'o applaud their superiority in political 'acumen and strategy.