LONDON EXCHANGE

Wairarapa Daily Times, 21 January 1933, Page 5

LONDON EXCHANGE

Hi. ACTION DISCUSSED SURPRISE IN LONDON. Press Association Electric Telegraph—Copyright (Received Saturday, 5.35 a.m.) LONDON, Friday. The “Morning Fost’s ’’ city editor says New Zealand depreciating currency surprised the city as the previous exchange rate had been working smoothly. In some quarters it was thought that embarrassment might be caused owing to the new heavy depreciation not being justified by the Dominion’s position in regard to balance of trade.

The “Manchester Guardian,” in a sub-leader, 'says Hugo Hirst, .us Chairman of the Empire Committee of the Federation of British Industries, takes the opportunity of the New Zealand exchange position to utter some reminders of the pledges exchanged at Ottawa, for someetliing like competitive depreeitaion of Empire currencies might be discerned in the present movements. What ever South Africa's decision may have done towards speeding Lip the latest development the New Zealand Government is acting substantially in accordance with the advice of authoritative local economists though opposed to the advice of tae Bank of England's emissaries of 1931.

EFFECT IN AUSTRALIA. SYDNEY, Friday. The fall in Australian-New Zealand exchange rate had an immediate effect on quotations of New Zealand stocks on Australian exchanges. For instance, New Zealand Government stock at 51 per cent, due 1937 sold on Thursday at £ll2/15/-, and yesterday quotations were buyer £lOl, seller £IOO. In trade the effeect will definitely lie against Australian exports, says the “Sydney Herald,” but imports from New Zealand will be encouraged as Australian buyers will be able to get them at a. lower price in Australia. Australian, tourists, too, will have more money to spend in New Zealand. A WARNING. (Receded Saturday, 11.30 a.m.) LONDON, Friday. The “Guardian” warns the Dominions against competitive depreciation of currencies, and says that New Zealand’s action dislocates the established competition between Australian and Netv Zealand exports, and increases the difficulties of those seeking to bring the Australian pound to parity with sterling, and also postpones the establishment of uniform Empire currency. The New Zealand and South African decisions will undoubtedly hearten the inflationists in Canada and the United States.