STABILISED EXCHANGE RATE

Auckland Star, Volume LXIII, Issue 27, 2 February 1932, Page 5

STABILISED EXCHANGE RATE

MANUFACTURERS APPROVE.

ARBITRATION COURT'S POSITION.

Approval of the action of the Government in stabilising the overseas exchange rate was expressed by several speakers at a meeting of the Auckland Manufacturers' Association yesterday. The meeting decided on a motion of thanks to the Government, and urged it to take whatever further steps might be deemed necessary to uphold the exchange rate.

Mr. J. A. C. Allum suggested that it was possible that were the rate allowed to swing freely, it would drop instead of rise. Yet, if it rose uncontrolled, local bodies would find their interest payments increasing. That, of course, would have to be passed on to the people. Mr. F. N. Ambler said that a fixed exchange rate -would benefit manufacturers, inasmuch as it would keep prices at a low level, while not militating severely against primary producers. > Mr. W. Parkinson said that the greatest sufferers by a free exchange would be the local importers of manufactured goods. A higher rate would bring benefits to the local manufacturer and the importer of raw materials. At the same meeting the position of the Arbitration Court in relation to the industrial conditions was considered by the executive committee. The following resolution was passed: "That the association is of the opinion that it would not be wise to abolish the Arbitration Court, but it recognises that the great change in world conditions necessitates reconsideration of certain aspects of the Court's operations."