THE EXCHANGE RATE

Hawera & Normanby Star, Volume LXXX, Issue LXXX, 14 February 1920, Page 5

THE EXCHANGE RATE

EFFECT UPON .TRADE. BY CABLE—PEESS ASSOCIATION—COPYEIGHT (Aus.-N.Z. Cabie Assn.) SYDMKY, Feb. 13. In connection with the exchange -rate difficulty the American Consul advises exporters to sell -to America in dollars instead of sterling. Spain is already doing this, and other countries are beginning to take the same attitude, -which the United States is encouraging. A prominent Sydney banker declared that by doing this Australian merchants would be helping to stabilise the London money market. Any Australian bank woul£ collect these dollars for a small commission, or settlement could be made in the ordinary course througja London. A.-#oller would thereby get not only a legitimate profit, but the benefit accruing from .adverse exchange. Also, Australian buyers of American goods should insist on delivery at the normal dollar exchange.. Most goods from America were sold at rates which allow ample trade profits without an additional profit being made on the dollar exchange..