THE RECOIL.

Auckland Star, Volume LXIV, Issue 21, 26 January 1933, Page 4

THE RECOIL.

EFFECT OF EXCHANGE. FARMERS PAY MORE. AVhile farmers are at present receiving higher values for exports in consequence of the alteration in exchange rates, many of them are disappointed at the reflex action which is an inevitable corollary. Immediately following publication of the Government's action over the exchange rate an announcement was made that prices of imported fertilisers would advance in consequence, and farmers throughout the province are now receiving notifications to this effect. The position is clearly indicated in the following extract from the letter of a fertiliser firm to one of its customers: "In accordance with our sale to you of three tons of basic slag to arrive ex boat about February 1 an additional 15 per cent becomes due on account of the Government having forced up the exchange to 25 per cent, increasing the landed cost of all overseas goods arriving after midnight on the 19th instant by 15 per cent. However, while the additional charge incurred is 11/7 a ton, we are charging you only an additional 10/ a ton to cover the rise, and feel sure you will understand the position."