AUSTRALIAN EXCHANGE

Nelson Evening Mail, Volume LXIV, 7 January 1931, Page 5

AUSTRALIAN EXCHANGE

PREVIOUS RATES INADEQUATE NEWSPAPER OPINION (United Preen Association—By Eleotrio Telegraph—Copyright) LONDON, sth January. Referring to Australian exchange the “Morning Post’s’’ city editor says it was common knowledge that the previous rate proved inadequate. _ Some regard the change as inevitable in view of the heavy balance against Australia, and believe that it furnishes the line of least resistance bv which production costs can be brought down in relation to world prices providing that costs and wages are not forced up correspondingly. At the same time it inflates the cost of the overseas debt service compared with the yield of internal taxation. This may make the burden seem harder to bear, but this will not be an unmixed evil if it brings home still more to Australians the necessity for a readjustment of costs and expenditure. The “Daily Telegraph” says that Australian bankers in London express the opinion that the new exchange rate has been directed purely by business reasons, and is devoid of all political significance. One stated that the aim is to check Australian imports and increase exports, which is the only way of solidly improving the Australian financial situation. The new rate should give the Australian producer the benefit of the real market position.

PREPAID CARGO FREIGHTS SUBSTANTIAL INCREASE MADE i SYDNEY,_ 6th January. Following upon an increase to £ls per cent, on the exchange rate from Australia to the United Kingdom, the Overseas Shipping Representatives’ Association to-day decided to increase the rate on prepaid cargo from £8 10s per cent, to £ls, but refrigerated cargo and fruit will be excepted.