EXCHANGE RATES.

Hawera Star, Volume XLVIII, 1 September 1924, Page 4

EXCHANGE RATES.

DAIRY FACTORY PAYS £45.000 LAST YEAR.

MR MASSEY. FORECASTS NEW SYSTEM. The statement that one; dairy company in New Zealand paid £*45,000 in exchange last year draws pointed attention to the handicap New Zealand suffers from. Mr Massey forecasts' a, new system, and quotes that of Egypt as an example. ' Referring to the matter in the House of Representatives last week, Mr Massey said he was glad to be. able to announce that the outlook for the ex•hange was better than it was. Therewas the satisfaction—if. it was a satisfaction—that tlie exchange was . lower, so far as New Zealand' was concerned, in connection with the transfer of money backwards and forwards. “The rate is coming down,” he said. “We have been offered exchange at one per. cent, lower within the last few days than has been the case for some time. I know there is a difference of opinion about it, but the extraordinary thing is that banks which are supposed to be making large profits out of exchanges are Hot at all anxious for the business. There are a lot. of people doing business, so far as exchanges are concerned, who are able to outbid the banks and transfer the money aka lower rate. ,

Mr. J. R. Corrigan (Patea): It cost one dairy company £45,000 last vear for exchange. . * Mr Massey : It must have been a very big dairy company. Mr. Corrigan: The New Zealand Co-operative Dairy Company , . . Mr. Massey: I think that is quite likely. It seems to be impossible to avoid it. We are exporting a great deal more than we are importing at present, and we have been borrowing money m London, and between ' the two things the people who handle the money get. into trouble, and this is their way out. lam very much better satisfied with the prospect at present than I have been for some time. Y\e have got to transfer quite a lot of money from England to New Zealand. X.®, ar f t° lng /ow, and we are irtf > have to . do it for the next eight or ten months, as far as is actually possible for me to judge. The Leader of the Opposition* A very expensive proceeding. Mr. Massey: I believe it is possible a s y ste m by which we mi o ht be able to do our own exChanges. (Hear, hear.) Strange to s y st ® m o f exchanges between Egypt and Britain is probablv the mosk satisfactory and successful in the world at present, and what Egypt 'is Dominion 0 ” * h “! d