DECLINE IN STERLING

New Zealand Herald, Volume LXIX, Issue 21325, 28 October 1932, Page 10

DECLINE IN STERLING

CITY TRADE AFFECTED ■ : i ' \ LARGE AMERICAN IMPORTS . ■ ■■ MANY LINES MAY; BE DEARER Trade conditions in the city have been materially affected iby the decline in sterling, which has had an unsettling effect generally. At the present time fairly large shipments of goods are coming from the United States and Canada, and on somo lines the landed costs are likely to be considerably higher than anticipated. This extra cost will ultimately find its way to the consumer, depending largely on the amount of local stocks held. The United Stales dollar conversion rate was quoted yesterday at 3.22, the lowest level reached since December, 1931, and prior to that in the period immediately following the war, when it was quoted at 3.19. The Canadian dollar was quoted at 3.51. Within a few days sterling in terms of American and Canadian currency declined 7 cents, and the fall in slightly over a week was 12 cents and nine cents respectively. As far as New Zealand imports are concerned, the dollar exchange has the most widespread effect. Large orders have been placed in the United States and Canada for goods for the summer season and the Christmas trade. A substantial proportion of these is already on the water, and the bearing the fall in sterling will have upon the purchases will depend on whether the contract terms require payment at the time of shipment or on landing in Auckland. It is stated that in many cases merchants will be faced with higher charges, should there be no recovery in sterling, and this is causing them to follow a cautious policy in quoting to retailers. The general opinion is that the higher f - • costs will be reflected shortly in resell ing prices, and it is possible that manj seasonal lines will advance in price or the retail market.