EXCHANGE RATE

Mt Benger Mail, 21 March 1934, Page 4

EXCHANGE RATE

NEW ZEALAND'S POSITIONL< INIH'N COMMENT. i I London, March !t>. The Financial News reviews the 1 pesition with regard to flu* New Zralami pound, and points out ■hat tin- Government N holding "1 surplus sterling i xehaiure has grown in a iittlu over a %**: i r to over £20.000.000 and is still growing. “Clearly this cannot continue for ever, and tin choice mils; lie between reducing the exchange discount of diminishing tins large surplus somehow-' ’I he paper concludes: “ Ihe downward adjust ill*. Ut of exchange discount is the only adequate solution aml would he in the general interest, hut it should not be too long dehyi d. ” N(| CAl'sE Fob’ CONCEKN A! 1C ('MATES KELLIES D t CRITICISM Wellington, March li Commenting on tie London call leg ram regarding tin- exchange rate, the Kt. lion, J. G. Coates said: ■'The comment ascribed to the Financial News is in line with that Journal's w*. 11-knowu criticism of New Zealand's exchange rate policy which it persists in misunderstanding- NolkhL v. ho is aware of the paper's atti: mi« jil now be misled- Though nis co.iujii( ni from a newspaper and from overseas, these circumstances did not establish its truth. As a matter of fact, there is no occasion whatever for concern over the funds held in Loudon, and any speculations based on a probable variation in the rati' are unwarreiited. ” JtAl