The Guardian And livening Star, with which is in corporated the West Coast Times. TUESDAY, SEPTEMBER 16th, 1024. THE EXCHANCE QUESTION.

Hokitika Guardian, 16 September 1924, Page 2

The Guardian And livening Star, with which is in corporated the West Coast Times. TUESDAY, SEPTEMBER 16th, 1024. THE EXCHANCE QUESTION.

Thk question of the rate of exchange is agitating the minds of all interested in the finance of the country. The

matter touches trade and industry and the producer especially, in addition of course to the Government which operates in big figures with the Homeland. Various methods are suggested to remedy the position, hut money like other commodities is gauged in value hv the supply in relation to the demand. The speedy return to the gold standard, will, it is lieiieved in most quarters, help to solve the problem, but with the

Win-Id fond i t inns as they are, there is n diflioitll I :irritM* to overcome. '! ho test which is possible is a tcinporisinj' system. I!mpirc currency hills have been suj/uc.stiMl as a way to help all pa: ts of the* Kmpire out of the situation. A North Island business man *\ho has .studied the com; lex question* .ind has investigated the system. whereby is able to operate with th(» Ihitish Treasury on an exchange of currency notes, has come to the comhision that an extension ol that scheme in the form of Kmpire currency hills would help very materially to meet tin* situation, and a (fold substantia! iinam ial relief in many quarters. The producers who are sending out of the country hundreds of thousands of pounds of value in various primary product', are mulcted heavily hy the exchange rate. An instance of

this is jjifon in relation tu the Cheltenham Dairy Cov. 'I ho till in' rate fixed I>v tin - hanks is two |it cent for de--111:11 id 'll.ills, the 1 ll'ei t bring 11 1:1 1 til" I :•: ni.-i- . t S. i’s In: 1:1 h fit (I worth .>1 | |-IM III:. 1 ill . Ihe limits ojeiatr Ini' nfly .seven weeks lie | sixes In per eenl Inf I.is «:•: ommodnlion. I'ttdcr the suggested Km) ire currency hill .scheme he would |i;t.v only itss (id :it the present nite of interest, n :1 \ ill” in the ensr of this one diliry (onipany of over £.'!(li;t), mill th ■ fit.il amount saved to the | rctlll Cl's ol Ne t /.inland would le iihotll

half a million. These tit'ires are impressive mill arresting, mil will assist to lirii'.o lioinc to the minds of the lenfle of tlm Dominion. the "lent, iml'ertmice of this <|iiestion. Ihe mutter is really one lor i o-oj erntive ell'ort 1 within the Kinpire. It hns heen eou'•i 1 1’ lei I mid dismissed at the If oiiomie C’ inlerein i'. hut to no real |.tir|ose to lar as remedial results ire eoneirned. I 111.- [O o|'f .111 lor t lo- form of In'! on o I lone I was lo on .'lil Inf ' :inl. Lot was rejeete I in favor of the "old standard, '■■hieh is rendered inij.mssiLle of o| e-

ration In-cause til tin* -world *. nudiliciis "hill actually norerii tilt' .Ml! I'ly of il< M. It would :11 r that as the siilijcci lannot lio dealt witli in n Tread wa,v. tin.- next best course to pursue is in reliition to tlio iiiitioiinl aspect ns noveildii" tlie Kml>ire. It is liolit, .surely. that to in;iiiitaiii tin- 1 1m1 i:il pre.-tieo in rcoard to liiiniiee. the position of all parts of lie Kinpiio should he rendered as eeonoluirnlly smnnl as pos.sil.h-. The currcucy scheme would lie tin ninth the laetliuin of l-linpile hills, which would he really an Km] ire wide application of liritish Treasury hills. These- hills would not he an addition to. hut would lie in .substitution lor, an agreed portion of the existing debt of each partiripatmo country. A portion of the

existing debt could In l cocoiv. 1 into Kinpiro ciiitoiu v hil'.s, whhli would To distributed ninonp;st litum: ini institutions mill citizens jii't as it is distrilmt<‘d unionist tlieni at | ro.sont. lint in a (lilioront Joriii, a. form that is not negotiable in the Kmpiro sense iu-dny. I ho rate ot interest would ho determined hv the I roe play of competition. At present there is no competition in the matter <;t exchange rates, hecatue the hanks in Australia. New Zealand and .South Atriea, which have the pound lor their currency unit, condone and issue a tariff tit which they ale prepared to Inly and sell exchange. The tariff is so high that when reckoned in terms of interest the difference between the tariff cates and the normal rate of interest constitutes in effect a levy upon the -whole of their import and export tiado. The tariff rate as

mentioned ill. no is the ex.-ctiug two per rent., which it would ho possible to minimise under ;in Empire scheme having wide rnniificiition.s, and noiossiiril.v greater security for the financial position. The subject deserves the consideration it is receiving, for it is one materially affecting the financial prosperity of the people fit the Dominion ns a whole.