HIGHER EXCHANGE

Hokitika Guardian, 24 January 1933, Page 5

HIGHER EXCHANGE

SUPPORT GIVEN

TO AUSTRALIA’S HIGHER RATE.

(Per Press Association —

Copyright.)

WELLINGTON, January 23.

“But for their increased rate of exchange, farmers and j asturers in Australia would not have been able to carry on,” said Mr H. J. Lambert, editor of “The West Australian,” in the course of an interview on his -arrival by the Maunganui from Sydney. -Mr Lambert said that about two years ago, the Australian rate of 'exchange went up from' ten per cent, to twenty-five per cent., and a few days later it rose to thirty per cent. It remained at thirty per cent until England wont off the gold standard. Then it dropped to twenty-five per cent. Generally speaking, lie said, people in Australia had accepted the increased rate philosophically, because they recognised that it M’as a natural rate. The high exchange had checked their imports for a time, and the importers had lived on the goods that they bought prior to- the rise. Now that their accumulated stocks had been used up, the imports increased. Contrary to the general opinion the retail price of goods did not go up when the* exchange went up. The cost of living had consistently fallen, When England went off the gold standard, people there expected prices to ri»e> but that did not eventuate.

N.Z. BANK INTEREST

WELLINGTON, January 23.

A report that the banks had -agreed, as the result of negotiations with tlie Government, to reduce the bank overdraft rates from 6 per cent to 5 per cent., uas not confirmed by the Prime Minister, Rt. Hon Mr Forbes, to-day. “I know nothing of the matter,” he said. “It is pure speculation.”