PUBLIC BORROWING

New Zealand Herald, Volume LXXII, Issue 22131, 10 June 1935, Page 5

PUBLIC BORROWING

REDUCTION NECESSARY STRAIN UPON TAXPAYERS OPINIONS IN AUSTRALIA The danger of over-borrowing l\v Governments was emphasised by Sir Mark Sheldon, chairman of directors of Anthony Hordern and Sons, Limited, at the annual meeting of the company in Sydney. Anyone who gave any thought to the subject must realise that the sooner Governments could reduce their annual borrowings the greater the relief would be to the community, he said. An expression often heard quoted in government circles was that business needed stimulating by the spending of money by governments, and this the Governments construed into borrowing money. But everyone knew the greatest, most effective, and permanent stimulant business could receive was reduced taxation, and it had been proved over the last two or three years that the reductions actually received had stimulated business, and put more men back into employment. "We all recognise there must be taxation," Sir Mark said, "also we know that if money is borrowed.there must be taxation to pay the charges on and services in respect of such borrowed money. There is no question that these public borrowings are to a large extent from money diverted from general business, and consequently from private enterprise, which gives permanent and stable employment. Anyone who takes the trouble to analyse the position knows what the result will be in the way of permanent employment if there is further relief from the taxation imposts that weigh so heavily on business at the present juncture." The question also was discussed by Mr. A. Bonville Were, chairman of the Colonial Mutual Life Assurance Society, Limited. He said at the annual meeting in Melbourne that, although 1934 had undoubtedly advanced Australia a step further on the path of recovery, it appeared that those in authority had not given sufficient thought to the already high interest bill which the taxpayer had to meet every year. "Satisfactory as the position may appear," Mr. Were said, "one cannot lose sight of the fact that there is a grave danger of over-borrowing. Many demands may yet have to be made on the people to keep the credit of the Commonwealth in the high position it now occupies."

FOREIGN EXCHANGES STERLING DEPRECIATES British Wireless RUGBY, June 8 The following rates on foreign exchanges were current yesterday, compared with the cabled quotations on June 6 and par:— June 7 June 6 Pur Montreal, dol. . . 4.93/4 4.95% 4.866 New York, dol. . 4.93%j 4.90% 4.866 Paris, fr. . . 74»i» 75'/ 124.21 Brussels, belga . 29.05 29.17 35.00 Geneva, fr. .. 15.09 15.20 25.22 Amsterdam, fl. . 7.28 7.33 12.10 Milan, lire . . 59% 59"/ i« 92.46 Berlin, r.in. .. 12.18 12.24 20.43 Stockholm, kr. . 19.39% 19.39% 13.159 Copenhagen, kr. . 22.39% 22.39% 18.159 Oslo. kr. . . 19.90% 19.90% 18.159 Vienna, sch. . . 2fiVi 26 Vi 34.555 Prague, kr. .. 118 IIS 3 /, 164.25 Helsingfors, mark 226% 226% 129.23 Madrid, pes. . . 36 36%, 25.221 Lisbon, escu. . . 110% 110% 110 Athens, dr. . . 517* 517" 375.00 Bucharest, lei. . 487% 490 813.6 RiodeJaneiro.mil. 4%d* 4%d' 5.899 d Buenos Aires, dol. 35d* 35d* 47.619 d Montevideo, dol. 39 , 4 d* 39% d* 51d Bombay, rupee . 18Vad 18Vgd lSd Shanghai, dol. .. 19d 19 s ad Hongkong, dol. . 28d 28Vi«d Yokohama, yen . 14% d 14% d 24.58 d Batavia. fl. . . 7.25% 7.30% 12.10 Belgrade, din. . . 218 218 276.31 Warsaw, zloty .. 'Sellers. (Received June 9, 5.5 p.m.) LONDON, June 8 On the foreign exchange market today the following quotations ruled: — New York, 4.91J dollars; Paris, 74=4 francs; Batavia, 7.22J florins.

NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of New South Wales) quoted the following dollar-sterling rates on Saturday, subject to alteration without notice: — United States Canada Conversion dollar bills received for collection and sale dollar drafts and telegraphic transfers . . . . 4.91 4.91 Purchase dollar bills . . 4.94 4.94 On a New Zealand currency basis these rat-es are equivalent to: — Selling: United Stntes Canada T.T 3.94% 3.94% On demand .. 3.94% 3.94% Buying: On demand . . 4.00 V« 4.00V4 Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice: — T.T. On Demand To £1 N.Z. Currency Selling Buying Selling U.S.A.. dol. .. 3.94% 3.99% 3.95% Canada, dol. . . 3.94% France, fr. . . 59.21 60.84 59.29 Noumea, fr. .. 58.49 61.89 58.54 Papeete, fr. .. 58.49 61.89 58.54 Belgium, belga . . 23.030 Germany, r.m. . . 9.578 Italy, lire . . ■ . 47.23 Switzerland.fr. .. 11-9-11 12.416 11.951 Holland, fi. .. 5.734 6.934 5.738 Java, fl. . . . . 5.714 5.989 5.718 Swoden.kr. .. 15.458 15.828 15.468 Norway, kr. .. 15.870 16.210 15.880 Denmark, kr. .. 17.878 18.248 17.888 Austria, sell. .. 20.62 —• 20.64

Czeeho-Slovakia, cr. 91.85 N./5. pence lo Japan, yen .. 1 Shanghai, do!. .. 25';V, a &"/„ 25"/#a

India, rupee 22*>:, a 22'/, a 22 a '/, a Ceylon, rupee .. 22*'! ; , a 22*- , a 22 2 V, a HonKkong. dol. . . , a .'M'% a 35'% 2 Singapore, dol. . . 35% a 31Vi a 35% a The cost in New Zealand currency of the pound sterling, and of the principal overseas units, on the latest quotations, is as follows: —•

Present Price Par sd s d Australia, pound . . 19 10.81 20 0.00 London, pound . . 24 10.(15 20 0.00 New York, dollar . . 5 0.79 4 1.31 Montreal, dollar . . 5 0.79 4 1.31 Paris, franc . . . . 0 4.00 0 1.93

Berlin, reichmark . . 2 0.50 0 11.74 Copenhagen. krone . . 1 1.33 1 1.22 Yokohama, yen . . . . 1 5.57 2 0.58

CUSTOMS EXCHANGE RATES Bates of exchange ruling at the announced dates of departure of 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 the vessels in New Zealand. Finally declared rates are marked*: — Canadian Scottish, Canada, dollars 4.85VS Niagara, Canada, dollars , . . . 4.91% City of Salisbury, America, dollars 4.95% Mariposa, America, dollars . . . . 4.93 Wniruna. America, dollars .. .. 4.95 Golden Bear, America, dollars .. 4.92' i Sydney Maru, Japan, yen .. .. 14V»d

WHEAT IN AMERICA (Received June 9, 5.5 p.m.) CHICAGO, June & Wheat. —July, 83} cents a bushel; September, 84 cents; December, 86 cents.

The New York price for cash is 1 dollar 2f cents.