EXCHANGE RATE.

Taranaki Daily News, 13 March 1920, Page 11

EXCHANGE RATE.

A COMPLEX PROBLEM. - DISCUsSEI) BY CHAMBERS OF COMMERCE. Rates' of exchange were discussed at the Chambers of Commerc > conference at Wellington last Thursday. Mr. ,). B. Gow (Dunedin) moved: "That wheresa the present rate of exchange between Xorth America and Kew Zealand is much out of proportion to the balance of trade between these countries, representations be made to the Associated Banks to consider the provision of facilities in America for the handling of Xcw Zealand bills of exchange at an equitable rate." He said that most business men were rather hazy on the cxhange question, and he presented the remit with diffidence. Ho doubted, personally, if anything that Xsw Zealand could do would remedy the exchange difficulty. It was not always realised that the present position of the American exchange meant that New Zealand got higher prices for goods sent to America than would otherwise be the case. The Dominion was at a disadvantage, on the other hand in buying goods from America, The Amcnom buyers a:;iv Me to offer very high prices for hides and rabbitskins under present conditions. Mr. T. Clarkson (Hastings) seconded the remit. He said that exports from British countries to the United States helped to remedy the exchange, and he thought Xcw Zealand could help matters by giving special attention to the Amen-' can market at present.

Mr. A. F. Roberts (Wellington) said there was only one American hide buyer in Xew Zealand at the. present time. About six American pelt buyers were operating. Those buyers could pay bigger prices than British buyers could give, owing to the exchange.

Mr. J. T. Martin (Wellington) pointed out that no arrangement that New Zealand banks could make would overcome a difficulty that was caused by the internal ional exchange. Mr. S. Kirkcaldie (Wellington) said a Xew Zealand seller, quoting in pounds sterling,, could fix his price to balance the loss on exchange. The chairman (Mr. Walter Gow) remarked ithat the Americans were finding that their apparent advantage had the effect of depriving them of trade with other countries. The balance of trade between New Zealand and the United States would not justify the present adverse rate of exchange if direct financial relations existed, but the Dominion had to nake its settlements through London The question was beyn'od the control of Xew Zealand Business men. The real trouble was that the exporter of Xew Zealand goods to America was gaining, while the consumers of American goods in the Dominion fire .losing.

Mr. E. H. Crabbe (Pahnerston Xorth) said that America was trying to build up foreign trade without buying raw materials or manfactured goods from abroad. Post-war conditions made it possible for the Americans to sell their goods at present, but the exchange. rate would bring its own adjustment in the future. The Americans would be nnabh to sell their goods if the exchange rate operated in their favor. The remit was withdrawn,