INCREASED EXCHANGE RATE?

Hawera Star, Volume LIV, 22 April 1935, Page 5

INCREASED EXCHANGE RATE?

FURTHER OBSTACLE TO TRADE

PREDICTION IN ENGLAND

(By Telegraph—Tress Association.) GISBORNE, April IS.

The statement, that opinion in England was that there was a possibility of an increase in the rate of exchange, instead of a decline, was made at a meeting of the Gisborne Chamber of Commerce by Mr E. T. Doddrell. • Mr Doddrell quoted a letter received by liis firm from its London office, which expressed the view, said to be commonly held there, that the rate of exchange on Australia was likely to be raised, and said this view -was supported by the movement of cash between the two countries. If such an alteration eventuated, the writer stated, it must provide a further obstacle to trade between the two countries and would also reflect on trade with New Zealand.

Mr Doddrell added that the communication came from a large and reputable firm with a turnover of £1,000,000 a year, and opinions expressed by its heads could be relied upon as having some foundation. It appeared that while New Zealand, was resting under the belief that a gradual reduction would take place in the rate of exchange there was a move in the other direction. Whether it was merely a threat to the British Government in connection with the meat quota discussions remained to be seen.

The president, Mr L. T. Burnard, commented that there was -no doubt that Australia was reaping -an advantage over Britain in so far as New Zealand trade was concerned, but he could not. see how the chamber could assist to improve the position. Mr 8. H. Phillips said the artificial rate of exchange was only postponing the restoration of normal conditions. The only remedy seemed -to be to continue to urge that the rate be gradually lowered, so that Britain, Australia and New Zealand should be brought nearer parity.