CURRENCIES OF EMPIRE

Hawera Star, Volume LIII, 4 November 1933, Page 5

CURRENCIES OF EMPIRE

UNITY AND COORDINATION NEED FOR COMMON POLICY. DOMINIONS’ EXCHANGE uATE'S. NEW ZEALAND LEVEL ATTACKED (United Press Association—By Electric Telegiapb Copyright'. LONDON, Nov.' 3. “Unity and proper co-ordination of Empire currencies stands in the lorefront of the British official monetary policy, but tbe fact that Imperial exchanges are so much out of balance militates against serious attempts to create an appreciable co-ordination level,” says the “Financial News” in a leader. “The Australian exchange rate still appears to be justified, but the same cannot be said of New Zealand, whose currency is seriously undervalued, though less so than the South African.

“Any co-operative policy would have, to follow one of three main objectives; One would be an adjustment of internal conditions to the prevailing exchange rates, the -second ■ a gradual effort to bring Australian and New Zealand - exchanges to a parity, the sentimental value of which would provide the strongest chance of enduring stability’; the third would be adjustment of the rates so that they would honestly reflect the economic strength of the countries concerned. “There is no doubt that the discount of the New Zealand pound is too wide, but New Zealand will not give up the idea that she must have the same discount as Australia.”