Emergency Bill To Stop

Speculation In Fiji

Suva, Aug. 23.

EVERYBODY in Fiji who has the slightest business or other links witn New Zealand—which means a con siderable slice of the commercial and pro fessional sections of the community—was flung into panic when the Dominion sent its currency back to parity with sterling on August 19.

“The Government of Fiji has no state ment to make” was the only comment from official quarters. But civil servants generally muttered that their recent 10 per cent bonus was largely nullified, and importers worked out what newly-landed shipments from New Zealand would cost by the time they had paid the bills.

Unable to feed itself, Fiji imports most of its essential food-margin from the Dominion, and the new rate of exchange means another lump on the cost of living, both by means of higher prices and higher duties at this end.

Late on Sunday (August 22) the Legis lative Council was called to an emergency meeting at 8.30 a.m. on Monday. It was immediately assumed that authority had been obtained from London to alter the Colony’s rate of exchange.

But the council was required for a less spectacular purpose—namely, to put through amending regulations dealmg with Fiji currency, so as to stop certain dangerous speculation in Fiji currency.

Speculators Busy

Currency speculators had been busy in the two days following the New Zealand announcement to an extent which, in the words of the Governor (Sir Brian Free ston), “if allowed to continue unchecked, might, in certain circumstances, involve this colony in financial disaster.”

As the law stood, the Commissioners of Currency in Fiji had to issue on de mand to any person Fiji currency notes, without limit, equivalent in value to any sterling sum above £5,000 lodged by that person with the Crown Agents in London, The Financial Secretary (Mr. R. M.

Taylor) pointed out that there was nothing to prevent anyone from buying in this way Fiji notes up to £1,000,000 or £100,000,000. This had to be changed.

“If it were generally believed that a change in the Fiji-sterling exchange rate were imminent, or even remotely possible, speculators, at very little expense to them selves, or risk of loss, could easily put themselves in a position to make a hand some profit at the expense of the people of Fiji by buying and holding Fiji notes from the Commissioners, subsequently to hand them back for sterling payment,” said Mr. Taylor.

Which, it might be added, may mean that Fiji’s exchange rate is going up, or it may not.

The amending legislation was passed in a few minutes.