EXCHANGE WITH AUSTRALIA

Taranaki Daily News, 14 February 1931, Page 9

EXCHANGE WITH AUSTRALIA

POWER BOARD’S EXPERIENCE.

POSSIBILITY OF BIG SAVING.

The intricacies of exchange prove very puzzling to those who are not accustomed to dealing in such matters. An instance of this was given at the meeting of the Opunake Power Board. The board had secured loan money from a firm the conditions being that the interest on the debentures should be paid in Melbourne. At its January meeting the board received a letter from the institution, notifying that if it so wished, it' could pay in Wellington, the privilege to continue at the option of tho lender. The secretary wrote to the . effect that the board would avail itself of the offer to pay in Wellington. At yesterday’s meeting ‘Mr. A. J. Brennan drew attention to the fact that, with the Australian exchange rate so much in New Zealand’s favour, the board would .now make a considerable gain if it continued to remit the money to Melbourne as provided in the debentures. Members generally saw the point. On communication by telephone with the manager of the Bank of New Zealand at Opunake, with which the board does its business, it was found that the rate of exchange be,twe?n, New Zealand and Australia. was at par. At present,- as far as that bank-was concerned.

Mr. Brennan expressed surprise, re; marking that .lie could, not deny the fact, but a,t the. same time lie could iiardly credit it.. Something ujust be wrong. Mr. Green agreed that the matter should not be allowed to rest there, and a committee consisting of the chairman, Mr. Brennan and himself was set up to deal with the payment of the interest, an amount of £440 falling due in March.

It is understood that the committee later waited on the bank manager and ascertained that the exchange rate at the Bank of New Zealand with Australia is at pur, whereas with another bank £lOO here is worth £llB in Australia, so that it appears as if there would be' a saving of £67 to the board by remitting tlie interest to Melbourne at present rates.