BEATING THE BANKS

Hokitika Guardian, 1 May 1930, Page 7

BEATING THE BANKS

RESOURCEFUL AUSTRALIANS

A\ hen the exchange position is adverse to Australia new avenues are explored or old ones opened again by which travellers, merchants and other business people hope to have money made available to them in London without paying the official rate. Some merchants, a Alelbourne paper spates, have purchased wool in. Australia and obtained the money tliey required in London by selling the wool in that centre. The purchaser of the wool lost interest bn his money for the period covered by the wool in its transport to London ,and lie also took the lisiC ol a possible fall in prices on the London wool market. Recent transactions of this kind, however, have proved profitable to Australian purchasers of wool. Similar transactions have taken place in hides, skins and other produce. A leading Melbourne importer wlio found it difficult to finance his purchases on the other side of the worlu, went over to Tasmania recently and bought a large consignment of apples. These he has shipped to London. The perishable nature of fruit makes the transaction more risky than one in wool, but he is confident that he will sell his apples at a satisfactory price, thus enabling him to finance his imports into Australia.

Many travellers have had money made available to them in London as a rosult of their having previously lodged money or securities with Australian houses which have London houses. All that had to be done at the Australian end was to furnish the client with ll letter of credit on the London office. Some business and semi-financial houses have had Bank of England notes sent from London for the convenience of clients proposing to travel abroad. Since the Commonwealth Bank decided not to cash its notes outside Australia, and since gold is not readily . available, an arrangement lias been made under the British silver coinage, which is still in circulation in Australia, will be issued to intending travellers in parcels not exceeding £lO. On this hum, however, the usual rate l of exchange, which would amount to 13s would have to be paid. State Savings Bank depositors who are going abroad may draw up to £IOO in London at the “on demand” exchange rate of £6 Is 3d, but they have to satisfy the head office of the Bank, in Melbourne that their requirements are urgent. At the post office up to £2O a week may be sent away by any one person, the exchange charged being 255.