A DAMPER

Nelson Evening Mail, Volume LXVI, 16 June 1932, Page 7

A DAMPER

AUSTRALIA AND OTTAWA EXCHANGE QUESTION WIIAT MAY HAPPEN (United Preas Association—By Electric Telegraph—Copyright) LONDON, 15th June. The Australian Press Association learns that though elaborate schemes have been worked out for the preparation of Australia’s case for presentation at Ottawa, there is a danger of the whole preparatory work being ultimately rendered useless. Many sets of figures have been carefully worked out envisaging the British imposition of various duties on different commodities of foreign origin in the interests of the primary producers of Australia and other dominions, whose products will be admitted free, in return for increasing preference to certain British manufactures by the dominions. But it is understood that throughout all the calculations on Australia’s behalf it has apparently been assumed that the present 25 per cent, exchange between Britain and Australia would continue indefinitely. Ever since it has operated this exchange has had the effect of giving Australian producers a bonus of 25 per cent, above, the low world prices of commodities which prevailed in recent months. If Ottawa were to adopt an Empire sterling currency, as advocated in many influential quarters, the exchange would disappear. In such event, Australian producers might be landed in an even worse plight than at present. They might possibly, for example, receive 10 or 12J) or even 15 per cent, advantage as against foreign producers, yet a loss on the deal through the disappearance of the present exchange.