UNIQUE POSITION

Hokitika Guardian, 30 June 1933, Page 7

UNIQUE POSITION

MEETING BILLS ON U.S. GOODS

DEMAND FOR GOLD DOLLARS

AUCKLAND, June 26.

A position, apparently without precedent, has arisen with regard to meeting bills on goods imported from the United States. Since the United States went oil’ the gold standard, some shippers have sent forward bills for collection in gold dollars’ or the equivalent of gold dollaig in paper dollars. This implies that the shippers are disregarding the depreciation of the dollar and seek payment at the previous gold rate.

A few cpscs have come to the notice of Auckland banks. In one instance an importer refused to give value in gold dollars, as stipulated by the shippers, and the documents were not handed over by the bank. Subsequently, an indemnity-was given by another bank and the documents were lifted. It is not yet known whether the shipper’s will press for payment on the higher scale, a-s it cannot be to thei" future interests to do so. -According to a bank official, either a friendly settlement must he reached between the parties or the case must be decided by law. It was possibly a question whether the original contract stipulated definitely gold dollars or not. However, the position had never arisen previously and certainly was not adopted by shippers of any other country the currency of which was depreciated. Although it is st-ated there has been no notice-able increase An dealing with the United States ns a result of the more favourable terms of conversion, the cheapening of the dollar irate is being watched with interest by Importers. The present selling rate of 4.14 dollars to £1 sterling As cheaper than at any time since Britain went off the -gold standard in -September, 1931. Actually, the extent of depreciation since January has more than compensated for the increase in the New Zealand exchange rate-. The hanks measure the depreciation of the dollar and sterling in terms of the- franc and the ratio of value of the gold dollar to the paper dollar its now about 1.2 to 1.