LOSS IN TRANSFERS
8.15 P.M. EDITION
THE DEPRECIATED POUND. COST TO BIG FIRM. (United Press Association —By Electric Telegraph.—Copyright.) Received November 23, 12 noon.) LONDON, Nov. 22. At the annual meeting of Dalgety and Co., Ltd., Hon. E. W. Parker, who presided, said that since the depreciation of the Australian and New Zealand pounds, the cost of remitting funds to London for the company’s general purposes had reached £304,814. “I realise that the depreciation of the pound has helped the hard-pressed primary producer and that the help afforded him has reacted favourably on the company’s earnings, therefore the money spent in remittances cannot entirely be regarded as a loss, but there is this difficulty: The company’s capital is largely invested in financing clients’ properties. This money has been borrowed here and remitted overseas at par exchange or small margins of difference. The interest rate obtainable on these capital sums has been reduced in recent years, both compulsorily and otherwise to such a figure that it is equivalent virtually to the borrowing rate here and, therefore, has ceased to be profitable. This affects the profits adversely and is a burden we may expect to remain for some time,” the chairman commented.
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Bibliographic details
Manawatu Standard, Volume LIV, Issue 306, 23 November 1934, Page 8
Word Count
200LOSS IN TRANSFERS Manawatu Standard, Volume LIV, Issue 306, 23 November 1934, Page 8
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