RATES OF EXCHANGE

New Zealand Times, Volume XLVI, Issue 10540, 17 March 1920, Page 4

RATES OF EXCHANGE

AND AMERICAN TRADE. A POSSIBLE REMEDY. ■ In a statement regarding the fall of the American exchange, a Christchurch merchant who lately' returned from a business visit to -the United States, said it was practically certain that once the Imperial commandeer is lifted from the Dominion's chief primary products there will be a considerable export to America. There is an excellent market- for wool, mutton, dried milk and other 'ines. Mutton can be disposed of on the "West Coast of America, and possibly butter as well. This is contingent on there being no big- combines, which could prevent marketing. The fall in exchange is, of course, due to an excess of exports from America over imports. New Zealand exports would make little difference in the ordinary way, because London is it-he clearing house, and exchanges are regulated from there, but indications now are that merchants are likely to become their own clearing houses—itlia't is to say, in the case of a firm importing such a line as petrol it may in turn export wool, or make certain arrangements with another firm which is exporting to a consignee of wool under instructions, that • instead of forwarding drafts for payment to New ZoaJand, he would pay the exnorter of petrol. The exchange probiom by this' method can largely be overcome.