THE EXCHANGE RATE.

Oamaru Mail, Volume XLIV, Issue 14008, 12 March 1920, Page 3

THE EXCHANGE RATE.

T'HR Pnnflo AusnrTATTow CHRISTCHURCH, March 11. In a statment regarding the full in the American exchange rate a local merchant who lately returned from ai business visit to the -States, said it was practically certain that .once the Imperial commandeer is lifted from the Dominion's chief primary products there will foe a considerable export to America, where there is ail excellent market for wool, mutton, dried milk, and other lines.- Mutton can he disposed of on the west coast of America, and possibly- butte v as well. This is contingent on .their being no big combines which would prevent the marketing. The fall in exchange is. of course, due to an excess of exports from America, oyer imports. • New Zealand's exports would make little difference in the ordinary way, because London . is. the clearing' house, and exchanges are regulated from there-, but- indications now are that merchants are likely to become their own clearing houses. That is to say, that in case of a firm importing such lines as petrol, it may in turn export wool, or make certain arrangements with another firm which is exporting. The consignee of wool, under instructions, instead of forwarding drafts for payment to New Zealand.' would pay the exporter of the petrol. The exchange problem by this practicecan largely be overcome.