MR MASSEY FORECASTS NEW EXCHANGE METHOD.

Shannon News, 2 September 1924, Page 3

MR MASSEY FORECASTS NEW EXCHANGE METHOD.

ONE DAIRY COMPANY PAID £45,000 LA#T YEAR.

The statement that one dairy oompany 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 early morning speech in the House of Representatives yesterday, Mr Massey ) said he was glad to be able to. announce that the outlook for the exchange wag better than it was. There Avas the satisfaction —if it was a satisfaction—that the exchange was lower, so far as New Zealand was concerned, in connection .With the transfer of money backwards and forwards. “The rate is coming dOAvn,” he said. “We. have been offered exchange at one per cent. lower Ayithin tiie last, few days than has been the case /for some time. I know there is a difference of opinion about it, hut the extraordinary thing is that banks Avhich are supposed to be making large pro.fits 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. Mr J. R. Gorrigan (Patea): It cost one dairy company £45,000 last year lor exchange. Mr Massey; It must have been. a very big dairy company. Mr Corrigan : The New Zealand Go-1 operative Dairy Company. Mr Massey: I think that it quite likely. It seems to be impossible to avoid it. We are exporting a grea' deal more than we are importing a. present, and we have been borroAv ing money in London, and betweei. the two things the people who bar. die the money get into trouble, and this is their way out. lam very mucf better satisfied’ with .the prospect a ; . present than I have been for soirn time: We have got to transfer quit* a, lot of money from England to NeA\ Zealand. We are doing it now, and we are likely to have to. do it for tin next eight or ten months, as far at is actually possible for me to judge. The Leader of the Opposition: A very expensive proceeding. Mr, Massey: 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 between Egypt and Britain 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.