RATIONING OF DOLLARS

New Zealand Herald, Volume LXXVI, Issue 23504, 15 November 1939, Page 7

RATIONING OF DOLLARS

AUSTRALIAN PROPOSALS MEETING LARGER ORDERS POOLING FOREIGN EXCHANGE [from our own correspondent] SYDNEY, Nov. S

Since the amendment, of the American Neutrality Act, the Federal Government has been considering the rationing of dollars, and the classification of goods that are not considered essentials. Where goods can be bought in sterling, that will be done, and the classification of non-essential imports on the dollar basis will vary from time to time according to Empire needs. The lifting of the United States embargo will mean that Australian imports will include not only machinery and tools required for. munitions factories, but also commodities necessary for the maintenance of civil life, expansion of industry, and the replacement of other imports now difficult to obtain.

Purchases on Cash Basis The Minister of Information states: — "Australia's demand for dollars might easily reach £5,000,000, in addition to our present purchases, presuming the sterling rate holds. It will be necessary to avoid increases in dollar purchases where they can be avoided. We are already spending much more in dollars than before the war —on civil supplies, through higher dollar prices, and the extra cost of freight and insurance—so much so that we might easily double the total number of dollars required for both defence and civil purposes. "Australia's credit position with the United States places our purchases on a cash basis. Dollars must be found if purchases are made, making it obvious that, if restrictions were not imposed, the dollar-sterling rate would become prohibitive and destroy our ability to buy essential services."

Australia obtains dollars either as payment for her exports to the United States or by allotment from the British Government. If there was no restriction on imports through the rationing of the dollar supplies available, there might be a scramble for dollars which would lead to further depreciation of sterling and of the Australian pound.

Possible Empire Co-ordination Financial authorities believe that the proposed rationing of dollar exchange is a further step toward a close centralised control of economic matters, that should eventually make a closer coordination of the financial policy of Australia with that of Great Britain. This is a development which followed naturally from the marketing arrangements which had placed such a large proportion of the Australian export trade in the hands of Great Britain. Not only dollars, but other important foreign currencies, such as guilders, may be dealt with in the same way. Possibly the whole Empire resources of foreign exchange will be pooled, and then reallocated to the various Dominions according to the urgency ot their needs.

PAPER-MAKING PROTECTION NEW AUSTRALIAN DUTIES Designed to assist the extension of the paper-manufacturing industry in Australia, recommendations for new protective tariff duties on various types of printing and writing paper have been made by the Tariff Board. As a safeguard against possible loss of protection if the value of Australian currency should move toward parity with sterling, provision is made for automatic adjustment of rates. The board's report emphasises that the evidence was taken and the recommendations made before the outbreak of war, and that they might not apply to existing conditions.

MINING NEWS MOUNT MORGAN SURPLUS The estimated value of production of Mount Morgan, Limited (Queensland), less cost of realisation, for the four weeks ended October IS, was £63,470. Estimated operating costs (including 5o,(388 tons of overburden discarded) were £11,654. giving an estimated working surplus of £21.816. Capital expenditure for the period amounted to £3724.

WEST AUSTRALIAN YIELD The Western Australian gold yield for the first 10 months of this year was 1.002,509 ounces, valued at £9,591,55)}, compared with 951,460 ounces for 10 months of 1938. Production for October, was 90.593 ounces, valued at £957,538, a decrease of 8432 ounces compared with October, 1938. SULPHIDE CORPORATION MINE Sulphide Corporation, Limited, will continue operations at the central mine at Broken Hill (New South Wales) until December 22. In August last tho directors decided, in view of the gradual depletion of ore reserves, and rising costs, that the mine should bo closed down permanently on November 30. REPORTS OF MANAGERS Una Hill Consolidated (Thames). —Dnrinct (he week ended November 10, the lower incline was advanced Oft. The "flinty" persists nnd appears to have flattened out, which would he an advantage in development. The country on the other side of the "flinty" is heavily interlaced with mineral veins of the. tvpe found in proximity to the Occidental and No. 2 reefs, where they have carried stood vnlues.

NEW COMPANIES REGISTRATIONS IN SOUTH Registration of the 'following new companies in (lie south is contained in the Mercantile Gnzcttc:— PUBLIC i'rovita Mills, Limited (Christchnrch). — Capital, I','iOUO, into jt 1 shares. Subscribers: Christchnrch—J. Baxter, 100; W. Jacknian, 100; P. A. Ardagh, 100; C. \V. Rudkin, 150; V. A. Norrish, .T, J. Norris, L. Norris, ,1 each. Objects: To purchase and acquire'an interest in processes for the manufacture of starch and rubber and other adhesives. PRIVATE Mid-Canterbury Transport, Limited (Christchnrch). —Capital, £'52,300, into £ I shares. Subscribers: Asliburton —Ashburton Transport Company, Limited, 21.000; J. B. Cnllen, ifoUUj H. R. 1). Porter, (MttiO; .T. \V. Ramsey, 'l2-10; J. Maxwell, 872; S. O. Lonjr. 80-1; J. H. Church, 400; H. M. Lewis, 22i1. Methven—Methven Transport Company, Limited, 5000. Ttaknin—Raknia Transport Service Company, Limited, ."OOO; H". Mend, SIT. Tinwald—J. S. Mc.Lauchlan, 1750. Mitcham —G. H. Hooper, 1154. Arundel —L, lv. Brown, (iOO. Sen field—ll. Bnynes, 800; A. Baynes, 120; M. Baynes, 120. Objects: General carriers. cartage contractors. Field and Ro.vds, Limited (Christchnrch). — Capital, i'OOuo, into ill shares. Subscribers: Christchnrch—\V. 11. Xicholls, J Mawson Stewart. Greendale—C. 11. Adams (joint interest in 4000 shares). Christchnrch —S. W. Field, A. A. Sandford (KM shares jointly); S. AV. Field. i:W; G. E. Ro.vds, 1 MM. Objects: General merchants, stock and station agents. PROPERTY AUCTION Alfred Burklnnd and Sons, Limited, will offer at auction at ,ils rooms, Albert Street, on Friday, ,0. p m., farm .'f irj-J acres, | ouo rood and 31 porches, at Waiau Pa.