COMMERCIAL.

Taranaki Daily News, 4 August 1919, Page 2

COMMERCIAL.

PURCHASE OF CANADIAN CHEESE. By Telegraph.—Press Assn.—Copyright. London, July 29. The Government has agreed to purchase the exportable surplus of the season's Canadian cheese, about 20,000 tons, at 25 cents, f.o.b. NELSON EROS'. DIVIDEND. a London, July 29. Nelson Bros, pay an interim dividend of 8 per cent free of tax. UNION BANK SHARES. London, July 29. A meeting of the Union Bank shareholders sanctioned the subdivision of shares. AMERICAN PETROL PRICES. New York, July 26. Petrol prices, GO to 02 degrees, are 24J cents wholesale and 27 cents' retail; 08 to 70 degrees, in steel, 30J cents wholesale. THE AMERICAN EXCHANGE. Dealing with the problem of tho American exchange and the position of New Zealand, the Mercantile Gazette says: Many people who are fairly well equipped upon the subject predict that the New York conversion rate will fall to four dollars, equal to a twenty per cent, increase on all goods invoiced from there to this country, and the question arises whether New Zealand cannot make better terms by arranging to cake her payments to the republic direct to New York without putting them through London. If our wool could ho sold In a free market, American buyers would purchaso heavily, and as they would not get the benefit of tho lower conversion rato through London, they would have no special advantage over local purchasers, because If we effected our exchange direct they would hovo to pay approximately five dollars for tho sovereign. Without wool purchases our exports to the United States have been gradually creeping up; If we could send wool direct to them the balanco of trade would be in our favor, and the conversion rate would stand at somewhero about 4.80. This being so, is there any reason why tho Dominion should bo dragged iulo tho European rote at all? Bocause Europe, on account of its Indebtedness to tho West, can only transmit remittances at a very great cost, thero is no good reaßon why this Dominion, which Is able, if it went alone, to buy. twenty per cent, cheaper from America, should not do so. If we make arrangements to effect our exchange direct with America, we are doing our Mother Country no injury; on tile contrary, we are lessening the balance she has to meet, and saving the consumers of American goods in tho Dominion to the extent of thousands of pounds per year. If our exports to America equal our Imports from there, why should we send our money to London and accept the adverse exchange which must rule there? Much better to discharge our liabilities to America by exporting goods. As a matter of fact, we do so now, but by sendiug through London wo pay in exchange heavy sums of money quite unnecessarily. We think that tho Chambers of Commerce should take up this matter at once, and we ask our bankers to point out if there is any real reason why we should not. get a'stabilised conversion rate of our own.