CUSTOMS AND THE EXCHANGE RATE

Dominion, Volume 13, Issue 29, 29 October 1919, Page 8

CUSTOMS AND THE EXCHANGE RATE

33H1TIS1I TRADING INTERESTS CONCERNED. Sir,—My opinion has been asked in regard to tlio proposal of tho Customs Dopartmont to fix, for purposes of Customs duties, the rate of exchange 011 tiho United Stilted moro in accordance with tlio actual rate than tho rato existing before the war. I desire to say that in ray opinion t'lie proposed change is just, equitable, and in the best interests of New Zealand and Km pi re trade. Now that tlio war is over, and the British manufacturer and trader are generally recovering themselves after a period of dislocation and disorganisation, out of all proportion to anything Buffered by the American manufacturer, it appears to 3110 right and proper that tho former should not lo«o that percentage of preference to w'hich they are entitled by taw by reason of the maintenance of ail artificial rate of exchange, for Customs purposes, with America. It is not true that British manufacturers have no desire, at present, to enter for overseas trade. 111 spite of the great strain imposed 011 tho resources of British manufacturers in eonncct'on with the reconstruction of Great Britain, Belgium, and Northern I'rance, a very large overseas trade is going on, the figures showing that tho exports from the United kingdom during the first six months of this year were at a rato 20 per cent., as regards value, greater than previous to the war. On tho other hand, the New Zealand Customs returns show that very considerable quantities of goods are arriving from the Old Country. It is very evident, to me from my own correspondence, and many letters shown to me I>y agents and represwita rives, that the Brit'sh manufacturer i\ very much alive to the importance of New Zealand as a market—l am. eta, S. N. W, M G-EEGOB, H.M. Trado Commissioner (Acting).