EXCHANGE.

Taranaki Daily News, 9 February 1920, Page 5

EXCHANGE.

CANADIAN PURCHASES, . BRITISH INSTEAD OF AMERICAN. By Telegraph.—Press Assn.—Copyright. Received Feb. S, 5.5 p.m. Ottawa, Feb. 0. A message from Winnipeg states the Board of Trade, the Bankers' Association, wliolesale merchants, and women's organisations unanimously resolved to cease buying American goods in order to check the disastrous discount on Canadian paper, and buy British goods in-stead.—Aus.-N.Z. Cable Assn.

EFFECT IN AMERICA. DECREASED EUROPEAN PURCHASES. Received Feb. 8, 5.5 p.m. New York, Feb. 0. The Chicago Institute of American packers has announced that the demoralisation of exchange has resulted in a large decrease in European purchases of American meats, especially during January, when purchases ceased almost wholly. It is believed a reduction in the price of packing house products in America is inevitable.—Aus.-N.Z. Cable Assn.

STATEMENT BY MR. HAROLD BEAUCHAMP. HOW NEW ZEALAND IS AFFECTED. Mr. Harold Beauchamp, interviewed by a New Zealand Times representative regarding the drop. in the sterling evchange, made a very interesting statement. It is getting almost impossible, he said, to negotiate any drafts now on London against the shipment of goods to the United Kingdom or to other parts of the British Empire where settlement is made by drawing on London, our credit with America being now practically exhausted. It is very .much the position of a merchant with a customer who is heavily indebted, and the mereiiant says to that customer, "I cannot supply you with any more goods, payment for which is made by promissory note. I must either have goods in exchange or gold." We cannot send any more gpld to America and cannot supply goods, because America is. to ail intents and purposes, a self-contained nation.

MAY PROVE A STIMULUS. "But this position may stimulate the British workers to produce more to send goods to other nations in exchange for the food products which Britain is now drawing from America. At the same time, one must remember that, if the position is long maintained, it is going to have a very serious effect on the export trade of America. It is, in effect, handicapping American manufacturers to the extent of 40 per cent, in exchange, and should benefit British manufacturers in like proportion. That has already been pointed out by members of the British Cabinet, in reply to deputations which have waited upon Sir Eric Geddes and others, pledging for greater protection against imported goods. They are | getting automatic protection to the extent of 40 per cent, by way of the rate of exchange. NEW ZEALAND'S ADVANTAGE. "So far as New Zealand is concerned," continued Mr. Eeauehamp, the position is affecting us, because we ai'e importing such large quantities of goods from America, .particularly from the Western States, in the way of petrol and so on. But, on the other hand, of tourse, it, may be found that America will require a large quantity of our primary products—pelts, taliow, and probably a certain quantity of kauri gum, and also more hemp in the. near future; and that will assist us in buying goods from America. That is our advantage as a country exporting primary products.''