London, Nov. 19.
The Federation of British Industries has addressed a letter Mr. Andrew Fisher, High Commissioner for Australia, regarding the serious position of the exchange between London and Australia, which is seriously endangering trade between Great Britain' and Australia. The letter declares that the Australian exchange banks, not possessing the necessary resources, are at present unable to purchase documentary bills on Australia, Hitherto, it explains, the British Government was the sole purchaser of staple Australian exports and the sums disbursed on account of these purchases were made available to the exchange banks through the Government of the Commonwealth. The cessation of purchases has radically altered the situation, and henceforward money expended in Great Britain on the purchase of Australian products will become available in the ordinary course of commerce for financing the export of British goods to Australia. Such finance will not be available until the maturity of drafts upon London in respect of free shipments of Australian products, and consequently for three or four months the Australian banks will have no funds to finance export trade from Great Britain.
The letter, therefore, suggests as a remedy that the Commonwealth remove its embargo on the export of gold from Australia to Great Britain and place at the disposal of the Australian banks in London the considerable sums which—the Commonwealth has at its disposal in Great Britain and which it is at present withholding from its normal function of financing trade.—Renter.
Text read from the printed page and cleaned; old type leaves the occasional error.