EXCHANGE INCREASE

Hawera Star, Volume L, 16 January 1931, Page 9

EXCHANGE INCREASE

DOMINION DRAFTS. BANKS’ ACTION) CRITIQSED. (By Telegraph—Frees Association.) CHRISTCHURCH, Jan. 16. In a leading article on the exchange rates the “Christchurch Times” says that the rates of exchange to and from London have been increased by an usual decree without a word of explanation or any evidence that there is any necessity for further protecting balances in London. “It is conjecture, but we hold the reasonable one that the latest advance in the rates of exchange to and from London lias been practically imposed by Australian banks trading here,” continues the “Times.” “If they, or any one of them, decided to pay a higher premium for drafts on London purely. New Zealand institutions would have to follow suit and what assurance has New Zealand that the balances built up in London as the result of purely Dominion business are not being used to support Australian credit ? We cannot afford to have the Dominion regarded as a milch cow by the Commonwealth or the hanks centred there, and as far as we can see these exchange rates are neither justified nor justifiable.”