CARGO RATES RAISED

Hokitika Guardian, 7 January 1931, Page 6

CARGO RATES RAISED

BY OVERSEA SHIPPING COYS.

(Australian Press Association.)

SYDXEY, January (5

Following upon the increase in the exchange rates, which brings it up to fifteen pounds sterling per cent, on the exchange from Australia to United Kingdom), the Overseas Shipping Companies’ ’ Association to-day decided to increase their rate on prepaid cargo from £8 !0s per cent, to £ls per cent. The refrigerated cargoes and lruit cargoes will he exceptted from the increase. LONDON, January 6.

Referring to the Australian exchange rate, the Morning Post’s City editor says that it was common knowledge that the previous rate had proved inadequate. Some, he says, regard the charge as inevitable in view of there being a heavy bajaiice against Australia and believe that it lurnishes the lines of least resistance by which production costs can he brought down in relation to the world’s prices providing that costs and wages are not forced up correspondingly •

At the same time, admits tin* City editor, the increase in the rates inflates the cost of -Australia’s overseas debt service as compared with the yield of .her internal taxation. This may make the burden seem the harder to hear,: hut this,.will ..not he an unmixed evil if it brings home still more to Australians thi; necessity lor a readjustment; of costs and expenditure. The Daily iclegrapli says: Australian hankers in London express the opinion that the new exchange rate lias been directed purely by business reasons, and that it is devoid of all political significance. One of them stated the aim is to check the Australian import's and to increase the exports. which is tlm'only way of solidly improving the Australian financial situation. The new rate should give the Australian producer the benefit of the real market position.