ECONOMIC RELATIONS

New Zealand Herald, Volume LXX, Issue 21469, 18 April 1933, Page 5

ECONOMIC RELATIONS

EMPIRE ACTIVITIES CO-ORDINATION SCHEME v Important recommendations regarding the co-ordination of Empire economic activities are expected at the end of this month, when tho report of tho Empire economic consultative committee will bo presented. The committee comprises representatives of the Dominions and colonies, and has been deliberating in London under the terms of a resolution adopted at Ottawa. The activities of 11 organisations have been examined. They are the Imperial Economic Committee, Imperial Shipping Committee, Empire Marketing Board, Imperial Agricultural Bureau, Imperial Institute, Imperial Institute of Entomology, Imperial Myeological Institute, Imperial Communications Committee, Mechanical Transport Council, Imperial Forestry Institute, and Empire Timber Committee. At Ottawa tho committee on economic co-operation brought forward a resolution, which was adopted by the conference, recommending the consideration, by a body representing tho various Governments, of means of facilitating economic consultation and cooperation, including an examination of possible alterations in the existing machinery, Tho appointment of tho consultative committee was the result. It includes representatives of the United Kingdom, Canada, Australia, New Zealand, South Africa, India, Newfoundland, the Irish Free State, Southern Ithodesia and the colonies. The committee met in camera, but i" was understood that it would probably endeavour to amalgamate some of tho organisations referred to and alter the scope of others. The Empire Marketing Board would probably receive special consideration. A London report cabled since tho committee began its work stated that the board was about to bo abolished, but against this, points out the Sydney Morning Herald, thero is the assurance given at Ottawa that the United Kingdom Government would continue to finance tho essential work of the board until September of this year. In any case, it is unlikely that any move will be mado until the consultative committeo's report has been considered by the Governments concerned. " RACING DOWNHILL" CURRENCY DEPRECIATION A TEMPORARY ADVANTAGE The International Chamber of Commerce has coined a phrase, "racing down the hill," to describe the struggle of nations to depreciate their currencies and so gain advantages over each ether in world trade. In a review of the movement published in the latest issue of its official journal the chamber claims that it is necessary to inaugurate a movement for a general return to gold. Unfortunately, it adds, marrying currencies to gold is not unlike human marriage; it is easy to say "Yes," but the arrangement will break clown unless certain collateral conditions are observed. The many proposals eagerly canvassed in regard to monetary policy, the chamber states, give the impression that there is still not a sufficiently general understanding of the importance of an international standard of \alue. When the common standard is abandoned a/ii the currency divorced irom gold there is no barrier to a competition in depreciation among the \arious countries, and voluntarily or involuntarily they move in that direction. In an isolated instance a depreciation of (Surrency gives tho country in question a temporary advantage by way of an export premium, but the moment the same thing is done bv ethers it becomes a race in currency depreciation, the only absolute limit of which would be the worthiessness of all currencies. "Under a condition of currency instability the transaction of > normal business through accustomed channels becomes difficult, uncertain and costly," the chamber proceeds. "The lack of fixed relationships between the various, currencies of the world turns normal international business transactions into a gamble. It creates further Government interference with the free passage and exchange of goods, and provokes sudden and abnormal tariffs and other barriers. Sterling fluctuations last year on one occasion wiped -out, on another occasion doubled, tho 10 per cent general duty imposed by Great Britain in March, 1932. The effect of depreciated currencies on tho United States tariff, and on the whole industrial structure of the country which is linked thereto, may be judged from tho fact that imports from depreciated currency countries for tho first half of 1932 fell only 7.7 per cent below tho quantity for the corresponding period of 1931, while imports from gold par countries showed a decrease of 34.6 per cent. Seven depreciated currency countries "showed an actual increase, "To this situation," the review adds, "there seerns only one answer. It cannot be a general sauve qui pent down the hill of universal currency depreciation. It can only be the pursuance of a policy of international co-operation and mutual concession in dealing with the causes of trade disorder and currency confusion, and of measures which will arouse confidence rather than alarm in capital and put idle currency and credit to work again." NEW ZEALAND MONEY ABROAD The cost in New Zealand currency of the pound sterling and of the principal foreign units, on "tho latest quotations, is as follows: Present Plica Par 8d s d London, pound .. .. 21 11.58 20 0.00 Australia, pound . . . 20 0.00 20 0,00 New York dollar . ..7 G.o.i 4 J.J I Montreal, dollar . . >• 6 2.3b 4 Paris, franc .. .. 0 3.46 0 1.08 Berlin, mark . • • • ] 8.86 0 11.74 Copenhagen, krone .. 1 1.36 1 1.2J j Yokohama, yen . . . . 1 6.65 20 58 These valuations represent tho current rates at which banks sell drafts payable on demand. CUSTOMS EXCHANGE RATES Rates of exchange ruling at the announced date of departure of tho vessels named are shown in the following table. They are subject to confirmation by the Customs Department when the exact time of departure is learned on arrival of tho vessels in New Zea and, finally declared rates being marked Wirral, America, dollars .. •• 3.441 Niagara, Canada, dollars .. •• ' Cold en Eaide, America, dollars . . °.4.\ Brisbane Maru, Japan, yen . . Waikawa, America, dollars .. 7, Mariposa, America, dollars . • Canadian Cruiser, Canada, dollars 4.14 BELIEF IN ADVERTISING In his report to shareholders at the annual meeting of Bovril, Limited, held in London on March 3, the chairman of diiectors, Lord Luke, said because they considered it of the utmost lniportance, the directors had not diminished their advertising. At a time when purchasing power in many countries was much reduced <1 policy or keeping the virtues .-X the company's product well in the public eye met with the board's strongest approval.