W. Samoa Now
p. 82 · Read in the full issue
Dollars Are Troubling W. Samoa Now
From Our Own Correspondent
Apia, Aug. 1.
JS indicated elsewhere in this issue, Western Samoa, too, is now facing the “dollar problem.” Hitherto the Territory was a substantial dollar earner, with its cocoa, which was sold to the United States, and, as its dollar requirements were compara tively small, no great restrictions were placed on the importation of dollar country goods.
However, the price of cocoa has now dropped and the whole Empire dollar
position has worsened. New Zealand
therefore wants Western Samoa to come into line and, with this in view, the Finance Committee of the Western Samoan Legislative Assembly, in mid- July, had discussions with the HZ High Commissioner, Mr. G. R. Powles, the Fautua, and the Secretary- Treasurer of Western Samoa, Mr. J.
B. Wright. They did not seem to make any more headway with the solution of the 'problem than have the more sophisticated politicians and theorists on the other side of the world.
THE High Commissioner outlined the dollar problem which confronted members of those countries (not confined to British Commonwealth coun tries) which were members of the Cen tral Dollar Pool of the Sterling area. He said that Western Samoa now had a nine-year contract for its output of copra with the British Ministry of Food and its exports of cocoa to America were not sufficient to pay for the present volume of imports from that country. It was apparent that more control over the ex penditure of dollar funds was essential.
He said that he had interviewed repre sentatives of the local Chamber of Com merce who had expressed their willing ness to co-operate in control which would result in a reduction of dollar expendi ture. On the whole, both the merchants of Western Samoa and the Government felt that a monetary rather than a com modity control would have the desired effect without calling for a great increase in staffs.
The Hon. Tofa, chairman of the Fi nance Committee, said that as a basii for any decision in the matter, accurate statistics were needed to show Westerr Samoa’s needs from the dollar area anc the amount of dollars available for ex penditure. He asked whether Samos actually was a member of the Centra Dollar Pool, or if it was not simply i case of Samoa being in a position U spend the dollars earned by exports to America. On being assured that th Territory was a member of the Pool h spoke of current rumours of a devalu ation of the British pound. He though New Zealand might, in such a case, tak similar action in respect of the Nei Zealand £ to which the Samoan £ wa tied. He thought the Samoan £ shout be made independent of the New Zealan £ and that it should be a matter fo Samoa to decide what would be best, t given circumstances, rather than follow New Zealand automatically.
The High Commissioner said that th value of a country’s currency depende on its financial stability and Samoa corn decide what value the Samoan £ was t bear in relation to £ sterling. To de predate it would not necessarily be bad thing for the country.
The Secretary-Treasurer agreed wit the Hon. Tofa that expert advice t sought and stated that the question c the effect of a currency change on tt Samoan economy should be treated £ a separate problem.
Mr. Powles reminded the Comnntw that in making the Samoan £ mdeper dent, they would have to consider *>&<*** for the currency and the general questic of financial links with New Zeal£ m through the Bank of New Zealand ar the Post Office Savings Bank.
On this note the conference ended. . was agreed to seek further expert advij on the question of separation of tl currencies and also the views of tl New Zealand Government.