TRADE WITH AMERICA.

Taranaki Daily News, 18 October 1919, Page 8

TRADE WITH AMERICA.

QUESTION OF EXCHANGE KATE.

(By Wire.—Own Correspondent.)' Wellington, Last Night.

The fact that the rate of exchange be- . tween British countries and the United States favors the American trader owing to the very great depreciation of the pound, was mentioned iu the House, by Mr. C. A. Wilkinson, who asked if the Government had definitely decided to take into account the rate of exchange when assessing the value of goods for Customs duty. The practice at present was to add 10 per cent, to the invoice cost in order to assess the amount of Customs duty payable. If account was to be taken also of the rate of exchange the prices of the goods would'be raised to the New Zealand user and the result would be a further increase mj me cost of living. Mr. Herries (Minister of Customs), replied that the Department intended to take the rate of exchange into account, but had consented not to apply the rule to shipments already ordered or on the j sea. The Order-in-Council would not come into operation until February Ist. If the rate of exchange was not taken into account the preference given fn ;the tariff t<f English goods would be of no effect, owing, to the depreciation of the English pound. The American exporter would have an enormous advantage which had not been intended by the House when the preference scheme was adopted. New Zealand's policy had been to give preference to English goods. ; Mr. Wilkinson remarked that there were many lines which must be bought from America.