BUCKING EXCHANGE

Rotorua Morning Post, Volume 3, Issue 613, 18 August 1933, Page 5

BUCKING EXCHANGE

(Press Assn.-

the latest mdve PLANS TO ESTABLISH CREDITS IN LONDON FUNDS' UNDER OFFER

— By Telegrajili — Copyright).

Christchurch, Thursday. There are indications that an attempt will be made during the curent import season to undersell the banks in exehange on London which, by agreement with the Government, the banks are compelled to maintain at a rate of £125 per cent. During the present weejk, one. local importing house has received three offers of London funds at lower rates than that established by the Government. The first offer came from the representative of. an English house who was prepared to sell practically unlimited London funds at £123 15s per cent. on telegraphic transfer. The two other offers were made by local brokers who offered London funds in £5000 lots at rates varying from £123 15s to £124 5s. Similar offers were made to other import.ers. The effeCt of this business, if it becomes general," will be to increase the surplus funds in London for which the Government is responsible to the associated banks. Expectations were that the full requirements of importers would be drawn from these funds, and in proportion as importers obtain their finance from outside sources, the burden which the Government must carry will become heavier.