Exchange

The New Hebrides

Planters’ Difficulties

Coin May Now Be

Shipped

A New Hebrides planter writes as follows: I note that you published the gist of my letter re credit facilities in the New Hebrides, and am very interested in the reply (as published) of the gen eral manager of Messrs. Burns, Philp (South Sea) Ltd. He states, “Your correspondent is not correct. He can ship as much coin as he likes, either to or from the New Hebrides. There has never been any restriction or limit as far as Burns, Philp and Co. Ltd. are concerned.”

My experience was as follows: After B.P. (South Sea) had shut down on giving drafts I approached the purser of the Makambo with regard to sending coin to Sydney. He told me that an inspector of B.P. (South Sea) Co. had instructed him that under no circum stances was he (the purser) to accept money from residents of the New Heb rides for shipment to Sydney.

I intend now to make another appli cation, on the next trip of the Morinda, to forward some coin.

It is stated that “Drafts are made available by the company throughout the group for domestic and other ap proved transactions, at a maximum rate of 2i per cent.” Just so, the do mestic and other approved transactions are drafts for a remittance to send to one’s family in Australia, or a draft to pay a newspaper subscription.

I state, and I challenge a denial, that drafts are not issued to independent traders by B.P. (South Sea) for trad ing purposes—except where (as I men tioned in my previous letter) drafts have been issued to certain French companies. It is now about 18 months since Mr. Brady, an inspector of the firm of B.P. (S.S. Co.) made a trip on the “Malinoa” through this group, and he stated that there were to be no more drafts issued except for “domes tic and other approved' transactions.”

The company states: “The local ex change and currency is a Condominium matter and Burns, Philp and Co. Ltd. are just as much inconvenienced as your correspondent.” When I went to school I learnt that if you take like from like, like remains, but B.P.’s arith metic works out as follows: £10 Sterling Less .. 4 Sterling Equals .. £6 Australian currency As they do not take the exchange into consideration, I fail to see how they are inconvenienced. It seems to me that it is only the planter who is inconvenienced. All B.P.’s (South Sea) billheads are now rubber-stamped with the following or similar captions: “All transactions to be in British Sterling, at our option”; but when they buy conra there is no option for the planter.

“Copra prices are continually chang ing and competitive.” They are indeed, but mostly downward. As for being competitive—well, conra sold locally to French firms realises more (when converted to Australian currency at current rate of exchange) than copra sold to B.P. and shipped by the Mak ambo, as in the latter case the planter does not get the benefit of the exchange. Excepting certain cases, where the Malinoa has quoted a higher price (in francs) to French companies, the B.P. prices has been consistently lower than prices offered by French firms. On one trip B.P. were buying copra from the French at 1.200 francs (over £12 Aus. currency) and at the same time offering the British planter £8 in Australian cash.

Unless Messrs. Burns, Philp make some arrangement whereby the planter gets the benefit of the exchange, the Makambo (or Morinda) is not likely to pick up much copra.

Later: Since writing the above, the Morinda has called, and the purser has informed me that there is now no restriction on shipping coin to Sydney at a rate of 1½ per cent., but that he is not authorised to issue any drafts.

We have heard, unofficially, that an amicable arrangement has been made between the Commonwealth Postmas ter-General and Burns, Philp, but no one actually knows whether such ar rangement has been made and what it consists of, as no one here seems to have any further knowledge of the matter.