EXCHANGE AND DEBT.

Waikato Times, Volume 112, Issue 18808, 2 December 1932, Page 10

EXCHANGE AND DEBT.

LONDON FUNDS GROWING. AN INT Kit LA TING BLVILAY. Messrs 11. Byron Moore. Day, and flnunieaiix, Melbourne, in their November review, stale that: "The exchange rale has been one of (he factors responsible for the liras y Government detlcils during the past two years, and. furlhermore, must continue to he a hindrance to our Governments in reaching Budget equilibrium. Tim cost of remitting funds abroad to meet interest and sinking fund payments has been particularly hra\ y, mol to raise Ihe. extra revenue it has fieeen necessary flu impose additional taxation, which Burden has detiui I e I \ relariled industrial progress. The ronviT.s'.in of purlieu of Australia's outs'.is debt to a lower rate of inleiv-d. will give some relief |o laxpayers, bill Hie main rrhrf will only come when Hie exchange rale on London falls lo par. “London funds are commencing lo

grow, and at the close of Ihe present iexport season Ihe balances held in London should 'he very satisfactory. Australia's credit abroad is rapidly improving, and it, should not he very j long before funding arrangements are ■! completed in respect lo our Heating I debt and Treasury bills in London. ! Probably this arrangement will be at- | tempted simultanecusly with the eoni version of portion of our overseas debi, .'and when eomploted Australia's over- ! seas financial position v*ll he on a ! much sounder basis, i “The question of exchange rates is | one which requires almost constant ! and expert ati on I ion, and it, is reasonI aide in assume Ilia!, the Hommonweallli i Bank Board is possessed of all the ' necessary qualifications, supported by the best technical advice accurately to ' assess Hie value of the Ansiralian pound in terms of sterling, and any alterations lo existing raff's will only i he made after due and unbiased coni' sideralimi of the salilnt eireami- ! stances.'’