MARKET LOST

Otago Daily Times, Issue 27059, 19 April 1949, Page 4

MARKET LOST

AUSTRALIAN IMPORTS EFFECT OF EXCHANGE RATE PA AUCKLAND, Apl. 18. What struck us most in Australia was the enormous range of goods in the shops and the general air of prosperity,” said Mr C. M. Bowden, M.P., on his return in the Monowai this morning. For a month he toured Australia with the leader of the National Party, Mr Holland, who is returning in a fortnight The cities, said Mr Bowden, were ablaze at night with window displays and coloured electric signs in the streets. Import control was imposed only on goods requiring dollars, and as a result the shops displayed goods from all over the world. Farming incomes were at high levels because of a bountiful season and record prices for wool, wheat, and beef. There had also been a profitable market for subsidiary lines such as dried and canned fruits and wines.

Asked about the exchange rate between Australian money and sterling, Mr Bowden said nobody seemed to favour an alteration, fearing the readjustment of incomes which would be involved. The present discount was of particular advantage to exporters of manufactured goods, and, of course, primary producers wanted it to continue. The Prime Minister, Mr Chifley, had stated that only in the event of depreciation of the sterling £ in relation to dollars would consideration be given to an alteration in the Australian £ in relation to stex-ling. The restoration of the New Zealand £ to parity with sterling and its consequent premium over the Australian £ had ruined New Zealand’s export trade to Australia, Mr Bowden said. Substantial quantities of soft timber, fish and seeds were being sent from New Zealand, and, although Australia wanted these goods, importers were not prepared to pay 25 per cent, exchange, and orders were being cancelled.