BANKING POSITION IN THE DOMINION.

Star (Christchurch), Volume XLIV, Issue 78, 1 April 1931, Page 6

BANKING POSITION IN THE DOMINION.

AUSTRALIAN FINANCIAL INFLUENCE ON TRADE. (Special to the “ Star.”) WELLINGTON. March 31. Reference is again made to the influence of Australian banks in New Zealand in the annual report of the Wellington Chamber of Commerce. “ There lias been a widespread impression in this Dominion that New Zealand banking affairs have not been entirely divorced from the Australian situation,” says the report. “ Pronouncement was made that the Dominion’s balances in London arc quite independent of the Commonwealth's, but the feeling still persists that Australian financial affairs have an Influence in this Dominion; this feeling has been intensified by reason of the exchange rates prevailing between New Zealand and Australia. This was represented to the banks, and some concession now operates in favour of bona fide exports as compared to transfers of capital to Australia. However, the trade balance between the Commonwealth and this Dominion has been in favour of Australia for many years to a considerable amount, and in contradiction to this the rates that have operated during the past year have given a premium to Australian exporters to New Zealand (who are thus advantaged in trading to the Dominion and thereby favoured in competition with Dominion manufacturers and producers) and have been adverse to the exporter from New Zealand (whose shipments help to reduce the disparity in trade).