BANE EXCHANGE RATES.

Taranaki Daily News, Volume LVII, Issue 103, 24 September 1914, Page 3

BANE EXCHANGE RATES.

UNIFORM INCREASE. DUE TO A'BNORMAL CONDITIONS. In reference to the protest made by tin; New il'lymouth Harbor Board against the increase in the bank aate of exchange on London from y 8 per cent, to % per cent., the matter has been brought under the notice of Mr. Harold BeauI'hanvp, chairman of directors of the Bank of New Zealand, by a Don ino,n representative. Mr. Beauchamp said that it was only natural that the exchangs rates should go up, and the increase was entirely due to the abnormal conditions now prevailing. As regards the increase from y 8 to % per cent., the Bank of New Zealand was only charging the sanio rate as other tanks. The buying and selling rates in New Zealand wera rather less than tlnifo obtaining in Australia at present. At first there was a considerable difference, but an adjustment had taken place, and there was not quite such a wide margin now, hut it was in favor of people selling drafts here.

The buying and selling rates of exchange were bound to increase in this eountry, as hi London, said Mr. Beauchamp. The great object was to get money into London to-day. Produce was likely to get blocked here, and the inability to get it to London would cheek lnanee. That was one reason why the exchange rate should go up. "To show the altered conditions," concluded Mr. Beauchamp, "quite recently banks were selling to other banks their telegraphic transfers at a substantial discount. To-day they are selling them at a big premium, the object being to get money into London from the Dominion. We have heard of this selling rate being as high as 30s per cent, premium in Australia, whereas a few months ago it was lis to 12s per cent, discount." 'J'liero was- no indication to show whe-i the abnormal conditions would relax sufficiently to allow a reduction of the old rates.