HIGH EXCHANGE.

Auckland Star, Volume LXIII, Issue 148, 24 June 1932, Page 3

HIGH EXCHANGE.

CITY COUNCIL'S DEBTS

WHAT INCREASE WOULD MEAN

PROVISION FOR ADDITIONAL

£22,000. If the exchange rate rises to 23 per cent, following the release of the exchange credits pool, the Auckland City Council will have to make provision for an additional £22.000 for its interest payments oversea this year. Commenting on the position this afternoon, the Mayor said that whik , every possible assistance must be given to the primary producers to enable the larger of them to carry on without a serious loss and to keep the smaller of them from walking off their holdings, he was aware also of the grave concern the suggested increase in exchange was causing importers and local bodies who bad overseas commitments. The Treasury itself to a far greater extent would fall in the latter category. If assisv.I anee must be given to primary producers it must be done equitably. The most equitable method would be a bounty or subsidy which would be ■•!, charge on the Consolidated Fund. Tllo reply of the Government would no doubt be that it w::s impossible to finance such a charge, but Mr. Hutchison said he would emphasise that advocates of tho exchange increase would take it (so it appeared) from the pockets of importers and local bodies, whereas the burden was one that should be borne by all sections of the community and not by some to the exclusion of others. Consideration, added the Mayor, had also to be given to the effect the proposed additional exchange was likely to have as a bar against imports, following, as it might, shortly after the granting in New Zealand's favour of a preferential duty by Great Britain.