NEW EXCHANGE SYSTEM.

Manawatu Herald, Volume XLVI, Issue 2781, 6 September 1924, Page 3

NEW EXCHANGE SYSTEM.

FORECASTED BY AIR MASSEY.

The statement that one dairy company in New Zealand paid £45,000 in exchange last year draws pointed attention to the handicap New Zealand suffers from. Mr Massey forecasts a new system; and quotes that of Egypt as an example Referring to the matter in his speech in the House of Representatives on Monday, Mr Massey said Ik was glad to lie able to announce that the outlook for the exchange was belter Ilian it was. There was satisfaetion —if' it was a satisfaction —that the exchange was lower -e far a- New Zealand was concerned, in connection with the transfer of money backwards and forwards.

“The' rate, is coming down,” lie said. “We have been offered exchange at one per cent, lower within the Inst, few days than has been the c;i e for some time. 1 know there is a difference of opinion about it, but. the extraordinary thing is that banks which arc supposed to be making largo profits out of exchanges are not at all anxious for the business. There are a lot of people doing business so far as exchanges are concerned, who are able to out bid the banks and transfer the money at a lower rate. Air .). R. Corrigan (Pa-tea): It cost one dairy company £45,000 last year for exchange. Air ATassey: It must have been a very big eompany. Air Corrigan: The New Zealand Co-operative Dairy Company. Air Alas sey: I think that quite likely. It seems to be impossible I a avoid it. AVe are exporting a great deal more than we are importing at. present, and we have been borrowing money in London, and between the two things the. people who handle the money get. into trouble, and this is their way out. I am very much better : satisfied with the prospect at present than I have been for some time. We have got to transfer quite a lot Qf money from England to New Zealand. We are doing it now and we are likely to Lave to do it for the next eight or ten months, as far as is actually possible for ipe to judge. The Leader of the Opposition: A very expensive proceeding. Mr Afassey: I believe it is possible to arrange a system by which we might be able to do our own exchanges. (Hear, hear). Strange to say, the system of exchanges bet ween Egypt and Britian is probably the most satisfactory and successful in the world at present, and what Egypt is able to do we should be able to do.