TOURISTS AND EXCHANGE

Taranaki Daily News, 12 September 1930, Page 5

TOURISTS AND EXCHANGE

TRAVELLERS WHO TAKE SILVER. HANDSOME PREMIUM ON DRAFTS. ■ ’ There was an amusing instance a few days ago in Auckland, says the Star, of the subterfuges the traveller has to resort to circumvent the inconveniences caused by the stringency of the money market. Unfortunately for New Zealand the banks are so intertwined in their Dominion and Commonwealth business that we have to suffer for Australia’s present unfortunate position. If New Zealand banks and Australian banks were entirely/separate institutipns the New Zealander would not at the present time bo feeling the irksome restrictions that the extravagant Australian has Drought upon himself. But because the banks are so related a the two Dominions, New Zealanders also are finding it difficult to arrange finance in London, which is just a popular with us as it is with our trans-Tasman cousins.

Owing to the high rate the banks now charge for cashing New Zealand notes in London, no one but a philanthropist would dream of taking any with him when he ernes Home. The other day the skipper of a liner going to London from Auckland carried with him £4O in silver coinage, and two passengers each took £7O in the same medium.

Why did they not change their money into Bank of England notes? the quickwitted will a. k. The answer is that the notes of the Old Lady of Threadneedle Street are fearfully expensive, owing to the unfavourable state of the exchange, and it pays better to cart Home hefty bags of silver, which passes for i’ face value—provided the travellers remember to sort out and leave behind any Australian coins they happened to possess. In any handful of silver one may chance to have there is certain to be a proportion of Australian-coined silver, and that is a currency that does not “go” in the f id Country. People who are accustomed to travel will not envy the tourists who burdened themselves with £7O in silver. N' sane or seasoned voyager carries valuables on his person when aboard ship. Even on the moat aristocratic liners there will be in the cabin a notice warning the occupant of the danger of risk doing so—just like “Beware

of Pickpockets.” One always deposits one's spare money and valuables with the purser, who puts them away in his safe. But if a shipful of New Zealanders decided to imitate the two who left Auckland the other day the purser would soon find his safe chock-a-block and some other scheme would have to be devised. The wise man sends his money Home by draft, and at the present time, with colonial credits in London at such a low ebb, the man with, say, £lOOO to send there would get a handsome premium from his bank. Usually the sender of a. draft would have to pay for the convenience of sending his money ,♦.< London, but to-day the “boot is on the other foot,” and he comes out of the transaction plus quite enough to take a pleasant jaunt over to Paris for a Week or so. Such are the vagaries of finance during times of stress. No doubt Sir Otto Niemeyer will in. a day or two be broadcasting a few hints as to bow New Zealand should act to get out of tb.e maze.