REMITTANCES TO AMERICA

Hokitika Guardian, 16 January 1920, Page 4

REMITTANCES TO AMERICA

COSTLY OWING TO EXCHANGE

WELLINGTON, Jan. 13

Those of the general public who wish to remit money to the United States through the medium of the New Zealand Post Office, may have been surprised at the highness of the rate charged. It is generally known that the value of the £ in the United States has fallen in a remarkable way, but the position of the Postal Department with reference to increased rail's charged fox money order commission on orders issued on the United States and Canada does not appear to be properly understood. The settlement of the accounts between New Zealand and the United States is, in accordance with convention, carried out through London, and the Department is consequently subject to the variations of exchange in the settlement of the money order accounts between the two countries.

In order to meet the extraordinary position which at present exists, the Postal authorities of the United Kingdom have materially increased the rate of commission on money orders to the United States, and the authorities in Canada have gone so far as to suspend the issue of money orders altogether. The New Zealand Post Office, being desirous of not completely closing the avenue of remittances, decided to increase the commission to an amount approximating the rate of exchange now existing. Not only was this step justified from the grounds already put forward,. but also on account of the fact that, suitie of the mercantile community were tailing advantage of the Post Office to send very large sums by means of money orders, the face value of which wa*s 4.87 dollars in the United rates, and on which the Dominion would lose heavily when making settlement through London.