EXCHANGE

Hokitika Guardian, 17 May 1933, Page 2

EXCHANGE

REDUCTION IN FIJI.

ADVANTAGES CLAIMED.

AUCKLAND, May 15.

Reference .to the lowering of the exchange rate m Fiji to 11 per cent, on London was made by the Hon. A. A. Wright, who lias been acting as Colonial Secretary in Fiji and who arrived at Auckland by the Aorangi on a holiday visit. The step had been unpopular with some of the producers in the colony, but on the other hand many advantages were already apparent. Many people in the colony hoped that New Zealand, too, would lower its exchange rate in the near future.

The trade of Fiji was in an excellent position, Mr Wright continued. The. revenue for the year was well up to the estimates and would considerably exceed t’nei ’.expenditure. This position had keen arrived at without additional taxation. There had been a record sugar crop of over 130,090 tons last year, and this year’s cron was expected to be about 125,000 tons. A crop of this size meant that about £1,C00,000 was put into circulation in the colony, and, without the high exhange acting rts a barrier, brought abetit an increased import trade with a greater yield from customs duties,

Floods recently had caused some slight damage to sugar crops, but had not affected copra or bananas, Copra prices were low, but there were hopes for an improvement. 'Although Fiji bananas were now allowed into Australia, they were subject to heavy duties, and it did not appear the' the t.-ade with the Commonwealth could be made profitable.