Exchange Rates.

Press, Volume LXVII, Issue 20170, 24 February 1931, Page 8

Exchange Rates.

■ The alterations in the ' Zealand exchange rates, announced today, are not in themselves very important, though they draw; attention ngiftn to the abnormal conditions which the xates are designed" to; Tile I most obvious faf these, of course, is the pleasure oF money to escape, from Australian risks, either to New' Zealand or through New Zealand to other more ■ settled and safe fields,/ and the high- ' Australian buying rate on New Zealand is the banks' barrier to fceep tL money " in. K this barrier were rigid, ; the handicap to legitimate trade would |be grave; but it is diminished, though it cannot be quite avoided, by the exercise of discretion, within the " ably wide tfmgf of £l3 12s "6d per cent. The abnormal play of discretion 1 Ijrithip the buying rate on New Zealand 1 arises indirectly from the same fact as Hfij "'abnormal difference .between the ' buying. jand selling, rates." There is 1 aothintftfQ »tempt New Zealand money 1 It" is safe? here 7 'thatf'.' who ajgue Violently for legislative raids on. interest and capital may take warning from the exchange' situation. If they persist in i a very foolish 'strain of talk, they can, and may, disturb confidence, in tb|s Dominion and stimulate an attempt to , shift, capital which would have* to be met as the banks are, ipeeting it in Australia.