THE EXCHANGE RATE.

Taranaki Daily News, 15 January 1920, Page 5

THE EXCHANGE RATE.

-MONEY ORDERS FOR AMERICA. It costs fis SJ in the pound to remit money from Xew Zealand to the United States of America through the Post Office. The rate, should be prohibitive, and no doubt in practice it will so prove The Postal Department lias been blamed for charging an exorbitant rate, out. an official statement issued, with the authority of the Postmaster-General sets out the position of the Department' the statement runs: "The settlement of accounts between JS T e,v Zealand and the United States is m accordance with the convention carried out through London and this Department is subject to the variations of exchange in the settlement of money order accounts between the two countries. In order to meet the extraordinary position which at present exists, the postal authorities of the United Kingdom have materially increased tiic rate of commission 011 money orders to the United States, and the authorities in Canada have gone so far as to suspend the issue of money orders altogether. The New Zealand Post Office, being desirous of not completely closing the avenue of remittances, decided to increase the commission to nn amount approximating to the rate of exchange now existing, and further to oblige small remitters, fixed the amount on every two shillings for the first pound. Not only was this step justified from the grounds already put forward, but also on account of the fact that some of the mercantile community were taking advantage of the Post Office to send very large sums by means of money orders, the face value of which was 4.57 dollars in the United States, nnd on which the Dominion would lose heavily when making settlement through London." "