Tongan Exchange

Position Is Puzzling.

From Our Own Correspondent.

Nukualofa, May 1.

THE articles in the March number of the P.I.M., regarding- copra prices paid in Rabaul to producers, has made local planters put on their think ing caps, and they are wondering where the difference between the N.G. price (£13/10/-) and the Tongan price (£8) comes in.

The rather vague explanation has been offered that it is due to the ex change, but as the exchange seems al ways to operate against dummy, whether a buyer or a seller, he is still very much in the dark.

The exchange question, as far as Tonga is concerned, is extremely puz zling. Cheques on Sydney banks sent to Auckland are debited with about 20 per cent, exchange, while Auckland cheques sent to Sydney are credited with only 4 per cent, (my own experi ence), so who is the lucky one who makes the rake off.

Drafts on Sydney are obtainable locally at par, but on Auckland they are unprocurable. There certainly seems to be a catch in it somewhere.

To make matters worse, the Govern ment has decided to limit Post Office orders to £10 per person or firm on New Zealand, so the smaller traders are having great difficulty in transfer ring money to that country, but the big firms are taking it very philosophically, and no wonder.

Whether the prohibition is wise re mains to be seen, but the position of the Government is a difficult one, par ticularly now that the banana ship ments cannot be relied upon to produce funds in Auckland, as was hoped. The net result of the prohibition is that the general European public feels that the Government has acted inconsiderately and in a manner that may bring reper cussions from New Zealand.