GOOD SIGNS

New Zealand Herald, Volume LXX, Issue 21640, 4 November 1933, Page 11

GOOD SIGNS

EMPIRE RECOVERY

CONDITIONS REVIEWED

TEADE OF DOMINIONS

HIGHER WOOL VALUES

BRITISH MOTORS BOOM

By Telegraph—Press Association—Copyright (Received November 3. 5.35 p.m.> LONDON. Nov. 3 The Daily Telegraph places together ns evidence of the British Empire's recovery of prosperity the prices obtained at the Sydney wool sales; the South African trade returns, which show a favourable balanco of £19,000,000 for the nine months ended September 3; and Canada's huge increase of nickel exports. The Telegraph then points out that the cpening day of the commercial motor show at Olympia, London, showed a record in respect of orders, with a strong freshening demand from New Zealand, Australia and other parts of the Empire. TRADE AGREEMENT AUSTRALIA-NEW ZEALAND COMMONWEALTH LEGISLATION (Received November 3. 10.15 p.m.) CANBERRA, Nov. 3 In the House of Representatives today the New Zealand Trade Agreement Bill passed all its stages on the voices. Mr. J. E. Fenton said he regretted that New Zealand was not represented in the Commonwealth Parliament, as both countries had much in common and there was great need for greater unity with the Dominion. RATES OF EXCHANGE ARGUMENT FOR PARITY NEW ZEALAND'S ATTITUDE (Received November 3, 10.35 p.m.) LONDON. Nov. 3 The Financial News, in a leading article, says ; " The unity and proper co-ordinatfon' of Empire currencies stands in the forefront of Britain's official monetary policy, but the fact that Imperial exchanges are so much out of balance militates against serious attempts to create an appreciable coordination level. " Australian exchange still appears to be justified, but the same cannot be said of New Zealand, whose currency is seriously undervalued, though less so than that of South Africa. Any cooperative policy would have to follow one of three main objectives. " One would be the adjustment of internal conditions to the prevailing exchange rates; the second would be a gradual effort to bring Australian and New Zealand exchanges to a parity, the sentimental value of which would provide the strongest chance of enduring stability; and the third would be the adjustment of the rates so that they would honestly reflect the economic strength of the countries concerned.

" There is no doubt that the discount on the New Zealand pound is too wide, but New Zealand will not give up the idea that she must have the same discount as Australia."