DOMINION PRAISED

Ashburton Guardian, Volume 55, Issue 291, 21 September 1935, Page 5

DOMINION PRAISED

AUSTRALIAN ON THE BUDGET.

AGRICULTURE AND EXCHANGE.

United Press Association-r-Copyright) SYDNEY, September 20.

“When one hears' important men and newspapers advocating the modification or the abolition of the present rate of. exchange between New Zealand’ -and Great Britain one cannot but feel astonished,” said Mr George Patterson, a well-known business man, who recently returned to Sydney , after a..visit Ito New Zealand, in an. interview, with the New Zealand Press Association.

“We are under the impression that fundamentally the position of i New Zealand is analagous to that of Australia for its exports, and that- the absolute backbone of both countries is. the strength of primary production and its ready sale,” said Mr. Patter con..* “Is it not true that the existing rate of exchange in New Zealand, as in Australia, is absolutely dictated by the vital needs of. the agricultural community? Is it not a fact that with the abolition of the exchange rate by New Zealand and its retention by Austra - lia, the latter would immediately be lit a position to. undersell New Zealand overseas, in those agricultural commodities in which the two countries are at present competitive?’’ Mr Patterson said there had been an. improvement in gvery direction in tho volume of business in New Zealand, with balance-sheets again showing satisfactory profits. ....... --. “One read's of the New Zealand Budget for the forthcoming year with an excess of revenue over expenditure!’ he said. “That unquestionably will make the mouths of at least the State Treasurers in Australia water. Again, it is an amazing fact that the New Zealand! public debt . was reduced ii'i the current year by £22,000,000, and there is a reduction in unemployment. This situation is achieved in spite of the fact that £5,630,000 is to be spent on public works (presumably out of the Budget); that .salaries and wages of public servants are to be restored by7 a per rent., and that there are to bo restorations in pensions and a reduce tion in wages tax,” !