RISE IN EXCHANGE.

Hokitika Guardian, 8 October 1924, Page 4

RISE IN EXCHANGE.

DAIRY FARMERS APPEAL TO AIR A LASS’LA". FEU-DING, October G. The Associated Ranks on Saturday raised the rate of exchange on London for demand drafts by five shillings per cent. Air R. Cnhl.e (chairman Dairy Farmers’ Union) has sent- the following telegram to the Prime Minister: —“ Iho ■lmuks on Saturday increased the exchange to forty-live shillings, making an extra charge of AA11?-"5.('00 to the producers. Can you obtain a thirtyshilling rate for farmers, similar to the charge on the recent loan. Ihe matter is very serious to dairymen.”

soar: consoling reflections

lAI PROVED PRICES OF PRODUCE

AYELUNOTOX. October G

The effect of the new rates of exchange operating between England and New Zealand from to-day is that producers or exporters realising in London. and wishing to be paid bore, '-ill on demand—receive £9< lbs for 'u v £IOO due to them. On the other linn:! an importer can buy in -London E-dO worth of goods and pay £O9 for thorn into a hank in. Now Zealand. The inly consolation that the primary producers of the Dominion can derive from the new- rates is that they are ’22s (Id per cent less than the exporters or producers of Australia are paying on produce realised in London.

There is, of course, the consideration that producers are in a. better position to hear this burden than in former years. This is evident on a comparison of prices for produce to-day with some former returns ior main articles of produce from New Zealand. These show that there is something in the better return lor products with which to meet the lbs per cent charged by the hanks if prices for produce today are compared with those current early in 1911, or even those current in the slump immediately following the termination of the war. New Zealand choicest butter realised for 1911 an average on the London market of lids ;!il per cwt. To-day it is commanding 221)s to 22-ls per cwt. Cheese then sold at (ids per cwt. To-day the latest quotation is 91s to t.’bs per cwt. Alodium cross-hied wool, the hulk of New Zealand production (dIJ per cent of the dip) made 3:Jd to -Ijd per pound in New Zealand sale rooms. To-day these wools are commanding 20(1 to 22d a pound and coaise cross birds thill brought .'hi In .’lid in 1921 are nowselling at I9d to 2UI a pound in London.

Dairy produce lias never lelt the shock that staggered the wool industry. Aleut, however, was bought at what farmers thought was a very good priie indeed under the so-called commandeer when ‘'specially prime Canterbury quality lamb” was bought for shipment from New Zealand at GAd a pound and primost wethers at bj|d. Today the prices sueli meat is realising in London (not allowing for freight and other charges) is 12.1(1 for lambs and tVJd for wethers. Of course costs of product ion arc higher, hut the agreeable fact has to he recorded that exports for the twelve mouths ended August ;tl are valued at £ 19,18.‘t.1b.’t, as compared wth £ 1b.9G7.1 Gb for the w hole of 192:5.