EXCHANGE ON LONDON

Rotorua Morning Post, Volume 1, Issue 74, 18 November 1931, Page 5

EXCHANGE ON LONDON

(Press Assn.-

REDUCTION EXPECTED UNCERTAINTY IN BUSINESS CAUSED BY REPORT EFFECT ON WOOLGROWERS

— By Telegraph— Copyright.)

SYDNEY, Tuesday. The "Sydney Morning Herald" says that it is understood a meeting of the Commonwealth Bank Board will be held to-day to consider the rate of exchange between Australia and Lohdon. The "Daily Telegraph" says a serious position 'has arisen locally owing to the uncertainty regarding the exchange movements, and yesterday the Commonwealth Bank was unwilling to buy drafts on London at any price bxbept from its own customers. The persistent and apparently well founded rumours that the Commonwealth Bank Board is to review the exchange position led to the impression that a reduetion from £131 10/was imminent. Trading hanks, to protect their own interests, naturally followed a prudent eourse. They were willing to buy only exchange that that they were in a position to resell. The president of the Graziers' Association, Mr. Tout, said that he learned with grave concern that there was a -distihct possibility of the exchange rate being reduced in th near future. "A reduetion in the rate now will be directly or indirectly refteeted in the wool market and would certainly act as a cheek to further rises in the wool prices. Wool is yet selling helow the cost of production and any setback in the market would adversely affect all Australian industry and business," he said.