DOMINION EXCHANGE

Manawatu Standard, Volume LII, Issue 176, 27 June 1932, Page 7

DOMINION EXCHANGE

POOL REGULATIONS. EFFECT OF WITHDRAWAL. RATE MAY BE RAISED. (United Press Association—By Electric Telegraph.—Copyright.) Received June 27, 8.35 a.m. LONDON, June 25. The Sun learns that the fears respecting the New Zealand exchange continue. The best informed circles consider that, when the pool regulations are withdrawn, the Bank of New South Wales will force the other hanks to raise the rate, although the market conditions do not justify it. British manufacturers, who supply 50 per cent, of the New Zealand imports, fear that increased exchange will disastrously affect trade. This means that the demand on London funds would be reduced, leaving the Bank of New South Wales to present huge credits available for sale in Australia at a profit of up to 25 per cent., if the New Zealand exchange is brought to the level of the Australian. VIEW OF AUSTRALIAN BANKER. Per Press Association. AUCKLAND, June 27. The Governor of the Commonwealth Bank, Mr E. C. Riddle, who is on Iris way to Ottawa to represent the bank at the Imperial Economic Conference, discussed the exchange rate question. He said that in order to prevent a breakdown the bank had assumed the responsibility in Australia by fixing the price at which it was prepared to buy from the trading banks or the public. This had prevented a collapse of the exchange at a time when it appeared inevitable. The bank took the view that it should be guided in fixing the rate entirely by the economic and financial position at the timo. “If a high rate" is desired in order to assist any particular section of the community, we take the view that this is a political matter and one entirely for Government action and responsibility,” Mr Riddle concluded.