STRONG PROTEST.

Auckland Star, Volume LXIV, Issue 19, 24 January 1933, Page 5

STRONG PROTEST.

RATE OF EXCHANGE.

WAITEMATA ELECTORS MEET.

GOVERNMKNT CONDEMNED.

Electors of Waitemata electorate met in the Auckland Chamber of Commerce rooms this morning, and unanimously decided to support solidly their member, Mr. A. Harris, M.P., in "taking any steps necessary to oppose notification, of the artificial raising of the rate of exchange and the guarantee of indemnity given to the banks."

Mr. H. F. W. Meikle, Mayor of Devonport, was in the chair, and also on the platform were Mr. J. Guiniven, Mayor of Takapuna, Mr. S. E. Kennings, chairman of the Waitemata Chamber of Commerce, Mr. J. Hislop, and Mr. R. A. Spinley, convener of the meeting. Mr. Meikle referred to the "somersault taken by the Government in one night," and said the sudden decision to raise the rate of exchange was going to cost the local bodies an extra £2,500,000 in interest on loans domiciled in London. At a time when every local body was looking for means of economising, it was hard to get a "blister like that. " Must Break Down." Mr. R. A. Spinley, chairman of- Mr. Harris' election committee, said their member was strongly opposed to the inflation of the rate of exchange. Speaking as an accountant, said Mr. Spinley, he was convinced that any advantages the farmers might get out of the high exchange would be only temporary, and in the end they would find themselves worse off than ever. He felt certain that the scheme the Government had sanctioned would inevitably break down owing to ite own weight. Mr. J. Hislop moved: "That this meeting of electors, representing all districts of the Waitemata electorate, expresses its strongest condemnation of the Government's unwarranted action in coercing the banks into artificially raising the exchange, and expresses its complete confidence in its member, Mr. Alex. Harris, and assures him that electors will solidly support him in taking any steps necessary to oppose ratification of the artificial raising of the rate of exchange and the guarantee of indemnity given to the banks." Mr. Hislop said that if the people successfully protested against the Government indemnifying the lyinks against loss on the artificial exchange, then the scheme would fall through. On December 31 there was a sum of £14,000,000 accumulated New Zealand credits in London, the greatest amount during the last 25 or 30 years, and the natural course would have been for exchange rates to fall instead of rise. The banks had warned the Government that there would be enormous losses with exchange at 25 per cent, and the people of the Dominion would have to find the money. Practical Suggestions. Mr. A. G. Lunn, who seconded the motion, said the benefits to the farmers under high exchange would be merely illusory, as a rise of 15 per cent in the rate of exchange would mean at least a rise of 25 per cent in the cost of the things they had to buy. Everyone admitted the farmers were entitled to consideration, but they should not be allowed to carry the day on such questions as exchange, which affected so many people. The raising had been pushed through in such a way that it made one wonder whether it would not be better to have a dictatorship. It was no use merely taking a negative outlook, and as a practical way of helping the farmers he would suggest that first of all the iniquitous wheat duties that caused people .to pay 100 per cent more for the staff of life, should be removed; and, secondly, while he did not advocate reducing the wages in the Civil Service, he thought a Sir Eric Geddes would find plenty of scope for effecting economies by reducing the numbers in the service. •Exchange Should Fall. Mr. Gainor Jackson prophesied that the banks and the Government would not be able to carry on with the high exchange for more than six months. There was too much money accumulated in London already, and the rate should have been lowered instead of raised. The benefits to farmers would be purely illusory. The banks would have to find £22.500,000 to advance to the producers for the goods to be shipped to London within the next six months, and he-could not see where they were going to get such a large sum. Mr. Stevenson strongly supported the motion. >

Mr. J. Guiniven said the proper way to help the farmer was to devaluate the land to its proper* producing value, not by such artificial means as an excessively high rate of exchange.. Mr. S. E. Kennings condemned the action of the Government in the face of technical advice from the bankers, with years of experience. The motion was unanimously adopted.

Mr. Hislop said it was hoped that other electors throughout the Dominion would hold similar meetings of protest.