Exchange Rates

Currency Gambles in Tahiti Trade With Four Countries

From Our Own Correspondent PAPEETE, October 8.

SOME excitement was caused in Tahiti commercial circles last week when a private radio an nounced a sudden jump in the London price of copra from £10 to £15 per ton.

Either there was a war on, or else the bottom had fallen out of the Brit ish £ —consequently sellers began to hold back their produce in anticipa tion of still better prices. Later, of course, the “coconut radio” got to work and all sorts of wild rumors circulated along the Papeete water front. Even now, Tahiti in general knows little of the truth regarding the international situation.

We are all waiting eagerly for the monthly mail steamer to arrive, so that we may find out what it is all about. One thing we do know, how ever, is that copra has dropped an other ten points on the beach and now stands at .55 francs per kilo, almost the lowest figure yet touched.

Probably there is no place in the world where business competition is quite as keen as in Tahiti, where the fluctuations of foreign exchange so swiftly have their effect on local com merce, or where interest is so closely figured out both by wholesale and retail merchants. It is common knowledge that some of the Chinese merchants import gasolene on a 60 day credit, sell the gasolene on arrival for less than cost, use the proceeds for 60 days and then pay their drafts.

A large proportion of the trade of this French colony, both import and export, is carried on with foreign countries, principally U.S.A., Austra lia and New Zealand, though direct business with France has increased considerably since the inauguration of the Messagerie Maritime shipping service.

The question of foreign exchange, therefore, is a matter of vital concern for nearly everybody living here. Re tired Britishers, living on pensions or the proceeds of invested pounds, find their expenses rising when they buy supplies in francs during the pre sent crisis.

On the other hand, there are anti cipations, in some quarters, of a drop in the retail values of certain im ported lines, as expressed in francs, as a result of the depreciation of British currency. This, however, re mains to be seen.