N. Hebrides Copra

Uncertainty Over Franc Troubles The Market

From Our Own Correspondent

Santo, Oct. 5.

THE Norwegian vessel “Kronviken” arrived in Santo to lift copra late in September, and another large vessel is expected late in October. These, with the “Antonis” (in August) mean three major liftings of copra in three months.

Owing to doubt about Australian currency remaining stable or appreciating to Sterling, the copra market in Santo has been subject to rumours and un certainties. Both planters and buyers were operating in the dark in September, and gambling that France will meet her copra credits in Sterling and not in blocked Metropolitan francs.

Firms operating in Australian currency were forced to take drastic measures to protect themselves against considerable losses when the news first came through that France would not pay in Sterling but only in her local francs. Measures are still being taken to provide against a 25 per cent, loss on copra now on the seas or held awaiting shipment, should the Australian £ follow the New Zealand £.

A considerable drop in the price pei ton, as from October 1, is the outcome of this financial difficulty. From £2/10/per ton, the highest price paid for New Hebrides copra during the depression, the purchasing price rocketed to £7O/12/6 this year. October’s price is expected to be about £5O. The price which firms on Australian currency will pay will be less 25 per cent. Their actual price cannot be determined until the French Government makes its price for the last quarter of this year.

This 25 per cent, cut is planned to build up a “stabilisation” fund to meet the possible loss. Should the Australian pound remain as it is, this deduction will eventually be returned to the planters concerned.

Planters are of the opinion that the natives will continue to accept a lower price, paid in Australian currency, in preference to a higher price paid solely in francs.

Mr. W. O. Fry who, in recent years, was manager of the Union Steamship Co.’s branch at Apia, Western Samoa, has been appointed manager for the Union Steamship Co., Ltd. at Burnie, Tasmania. Mr. and Mrs. Fry spent a brief holiday in Sydney in September, before going on to Tasmania.