RAE OF EXCHANGE

Otago Daily Times, Issue 22519, 13 March 1935, Page 8

RAE OF EXCHANGE

WARNING TO IMPORTERS ADJUSTMENT MUST BE FACED (.Special to Daily Times) AUCKLAND, March 12. A warning to importers that the position created by arbitrarily raising the rate of exchange wouM have to be adjusted "some time," and that importers would be wise to build .up a reserve against the depreciation of stocks which would result from the adjustment, was given by Mr Hugh G. Thomson, chairman of the Auckland Importers' Association at the annual meeting to-day. "I feci that it should be represented to the importers that it would be foolish to be lulled into a sense of false security simply because of the statement of the Reserve Bank issued some tune ago that there would be no material 'change in the rate of exchange for a substantial period." said Mr Thomson. "Undoubtedly this announcement has had a good effect in simulating trade by creating temporary confidence and with the primai-y producers' position not improved it would seem unlikely that the present policy will be departed from for a considerable time. " Importers, however, should realise that a period of adjustment will have to be faced some time, and it will be the wise trader who builds up a reserve to meet that time o'f falling landed values and consequent depreciation of stocks held. While we feel a sense of sr-curity for the present in regard to the exchange, wc cannot be blind to the effect it is having on the British manufacturers. We have recently been urged ,by the Gover-nor-General to give Great Britain as much trade as we can —advice which is sound —but it must be apparent to any business man that the present trend, is to manufacture more in the Dominion under the protection of the exchange and to increase our imports from Australia."