EXCHANGE RATE AMENDED

Hawera Star, Volume L, 9 January 1931, Page 5

EXCHANGE RATE AMENDED

DOMINION AND AUSTRALIA

BANK OF NEW SOUTH WALES

(By Telegraph—Press Association. I WELLINGTON Jan. An alteration in the New Zealand Australia exchange rates has been made by the Bank of New South \y a i es . The new rates, which ai e being charged by the bank as fiom January 5, are. as follow: Australia, on New Zealand: Buying £lO9 10s, sealing £llO, on the basis of £IOO in New Zealand. New Zealand on Australia: Buying £llO, selling £lO9 10s, on the basis of £IOO in New Zealand.

POSSIBLE COLLAPSE OF RING. United Cress Association—By Electric Telegraph Copyright.) LONDON;, Jan. 8. The “Financial Times” says the absence of a statement from the Associated Banks regarding the increased exchange rates is causing surprise in the city. Well-informed people express the opinion that the Bank of New South Whales’ break-away may lead to the collapse of the “ring. Exchange is fluctuating in accordance with the actual market conditions, which is eminently desired. The “Financial News” remarks that the city lias interpreted the latest advices from Australia unfavourably and funds have been influenced and stocks lowered. The “Daily Telegraph” says that although the reduction of the Union Bank interim dividend was not surprising, Australian Bank shares were marked down and are standing generally at or below the lowest levels touched in 1930. After the banks’ announcement ox the increase in the exchange rate chaotic conditions prevailed on the Australian exchange market. Most Australian banks, pending the clearing up of the position, refused to deal, except in small amounts, large transactions being held over wherever possible. .- . The “Financial News” .says it is generally admitted that the Bank of New South Wales forced the hands of the other banks when it was most important that the banks .should cooperate on an agreed policy. Moreover, the heavy elec-line in the value ol the pound can be taken only as a measure of failure to make effectix e adjustments between prices and wages costs, upon which the restoration oi the currency to gold parity must depend .