EXCHANGE RATE INCREASE

Taranaki Daily News, 17 January 1931, Page 7

EXCHANGE RATE INCREASE

IS THE DECREE JUSTIFIABLE?

PAPER QUESTIONS DECISION.

By Telegraph.—Press Association. Christchurch, Jan. 16.

In a leading article on exchange rates the Christchurch Times says: “The rates of exchange to and from London have been increased by the usual decree without a word of explanation, or any evidence that there is any necessity for further protecting the balances in London.

“It is a conjecture, but \ve hold a reasonable one, that the latest advance in the rates of exchange to and from London have been practically imposed by the Australian banks trading here. If they, or any one of them', decided to pay a higher premium for drafts on London the purely New Zealand institutions would have to follow suit, and what assurance has New Zealand that the balances built-up in London, as the result of purely Dominion business, are not being used to support Australian credit?

“We cannot afford to have th© Dominion regarded as a milch cow by the Commonwealth, or banks centred there and, as far as we can see, these exchange rates are neither justified nor justifiable,”