EXCHANGE OBSCURITY.

New Zealand Herald, Volume LXVIII, Issue 20991, 30 September 1931, Page 11

EXCHANGE OBSCURITY.

position still indefinite. ACTION TAKEN BY CANADA. NEW IMPORT REGULATIONS. The obscurity shrouding the exchange position had not been relieved yesterday, and importing firms were still marking I mie until the position should be clarified. A development was the receipt in Auckland of a I ress Association cablegram from Ottawa stating that new import icgulations had been issued in Canada in view of the exchange fluctuations. In tho case of one bank yesterday tho dollar conversion rate was quoted at 3.50 to the pound, while another banking institution quoted a selling rate on the United States of 5.55 dollars and on Canada of 0.95. Hie buying rales in this cafie were 4.05 dollars on the United States and 4.45 on Canada. A director of one large importing firm said that, apart from tho largo orders which his firm placed in Britain, a.certain number of orders was sent to French business houses. In view of the present position the firm's agents in London had been instructed not to place the French orders, but to defer buying as long as possible. It was likely that these orders would eventually go to British firms. The message received' from Canada was as follows:—"Regulations designed to counteract- the exchange fluctuations, which will apply to imports from courtfiios with a discounted or appreciated currency, were issued on Monday by the Department of National Revenue. When goods are appraised for duty, the currency value in the country which shipped the goods will be the determining factor." No official advice of this action by Canada had been received in Auckland yesterday, but- the view was held that the measure was only a temporary one. It was not known how Australia would be affected by the decision, in view of the trade agreement between Australia and Canada. A clause in the agreement between Canada and the Commonwealth reads as follows:—"Nothing in this agreement shall be construed to affect the right of either country to impose any special duty or tax (other than dumping duty) upon goods imported, provided that such special duty or tax does not exceed that imposed on similar goods imported from any other country.'-