THE EXCHANGE RATE.
SERIOUS POSITION. CAUSING CONCERN AT HOME. By Telegraph—Press Assn.~ Copyright. Received A»g- 2li, 10.13 pm. London, Aug. 20. Newspapers continue to draw attention to the adverse rate of exchange between London and New York. Although the market has recovered slightly from the violent shook following Mr. Lloyd George's speech, further fluctuations are anticipated. 11 is generally agreed that the break will have served a useful purpose if it draws the attention of the public to our enormous indebtedness to the United States, and opem-d the people's eyes to the evils of extravagance, and convinced them that the importation of unnecessary articles and the absence of evpansion of ports will further depress the exchange, automatically increasing our indebtedness. It is pointed out that the fall in exchange will react unfavorably on America's export trade. In fact, it has already resulted In the cancellation of a considerable volume of orders. American exports are also .inourring losses owing to taking payment in depreciated European currency. Sir Auckland Geddes dealt with the situation in a speech at Basingstoke. He said two great problems were before the country—to get production and to find markets. The Government was organising a system of export credits with a view to facilitating the resumption of the export trade to the disorganised parts of eastern Europe, and was also remodelling and strengthening the consular, commercial and diplomatic services, and making an effort to foster trade within the Kmpire. Regarding production the greatest danger was the decline in the output of coal, without which the recovery of Europe was impossible. , There was a danger of America flooding us with goods. She was not only u great exporter of manufactured goods, but the greatest exporter of raw materials. She wants little from abroad. Consequently the money exchange moved in her favor. Every such movement interferes with her power of export. Sir Auckland Geddes stated, that if America continues to sell great quantities of food to Europe, and the latter ' pays them in money the exchange will move more and more in her favor until food and manufactured goods from America will be almost imbuyablc. Therefore Europe must work oiit its own salvation, which can only be done through hard work, and increased production in mines, the fields and factories. —AUS.-N.Z. Cable Assn.
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Taranaki Daily News, 27 August 1919, Page 5
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383THE EXCHANGE RATE. Taranaki Daily News, 27 August 1919, Page 5
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