NEW ZEALAND RATE

Hokitika Guardian, 15 July 1932, Page 6

NEW ZEALAND RATE

EFFECTS' OF AN INCREASE. LONDON, June- 10. The “Daily Express” takes note of the dispute over thle New Zealand exchange rate, which, it s-a-ys may culminate in the Bank of New South Wales resigning as a member of the associated Australian banks. The writer gloe-s on to explain the- views of opponents of the proposal made- by the Bank o-f New South Wales.

Mr Trevor Blare; writing to the 1 “Daily Telegraph,’’ says: “Almost on the- eve lof the Imperial Economic Oon fere nee at Ottawa there conies disturbing news from Australia and New Zealand which dors not seem to liave attracted .tine- attention it. should in this country. The Bank of New South Wale-, which has large interests - in the primary industries of New' Zealand, is stiving to obtain an increa-se of the Dominion exchange rate on Britain from about 10 per cent, to 25 per cent. What this would m!ean to B-ritish manufacturers must he obvious It would wipe out the benefits of Imperial preference at present existing between New Zealand and the Motherland, forcing importers of British goods to- raise prices 'so heavily in New Zealand that this export trade' from Britain to the Dominion -would be reduced to a minimum.' Tt would also have a- serious effect upon tlip people in this country whto derive their income from-New Zealand, as it would cost them £25 to bring £I.OO of their income to- Britain.”