EASTERN EXCHANGE

Otago Daily Times, Issue 17630, 21 May 1919, Page 5

EASTERN EXCHANGE

RISE OF 11 PER CENT.

EFFECT ON IMPORTS.

(From Oub Own Coreespondent.) . AUCKLAND, May 20 According to private advice received in • excha-nsc on Calcutta and Colombo has risen another 11 per cent. The principal interest in the present phenomenal rise is duo to the fact that all goods from India and Ceylon will cost at least 11 pcr cent, more to land. This will mean a gTeat difference in the cost of tea, comsacks, S packs, bonedust, castor oiL linseed oil candles, desiccated cocoanut, cocoa beans' and coffee theso articles being tho principal lines imported from India and Ceylon during recent years, and the above is usually thek older of importance as indicated by the total whn? mpo^ Jt is not yet known to v. a operating in tho East have affected the exchange on Singapore, Hongkong, and Kobe, but it is to bo expected &at the finances of tho East aw hL fht/ a^ ota f te<1 J in their general bearing that a sniular advance will before Ion" ™ C f a I fM?° j a T^ rom tho Straits Settle" menta, China, and Japan. If this takes place W°l W1 11 lncreMe m tho cost of superphosphates Japanese silk, cotton and fancy goods, sulphur sago, tapioca, and tho innumerable small goods imported from Japan m increasing quantity. I n the meantime the roo in India and Ceylon is quite definite, and as it is equivalent to nearly 2d per lb on tea it is a very serious matter to importers. There may be othor factors, but re T lnS °] n sdver alone is probably quite sufficient to account for the riso in the rate of exchange—that is to say, the rate at which tho rupee is convertible into sterlin" Kccent invoices were converted at Is 6<d and the_ present information indicates that further invoices will be at Is B|d for everv ru-pee m tho. Indian or Covlon invoicc A cablegram from London published this week announced' that the removal of the control had caused a riso of 4|d in silver, and it ™ag anticipated that it would bo some time beforo the market would settlo down.