MR. RANSOM'S ADDRESS

Auckland Star, Volume LXIV, Issue 206, 1 September 1933, Page 3

MR. RANSOM'S ADDRESS

GOVERNMENT ACHIEVEMENTS. HIGH EXCHANGE DEFENDED. (By Telegraph.—Press Association.) CHRISTCHTJRCH, Thursday. The Minister of Lands, Hon. E. A. Ransom, in his speech at Lyttelton this evening, discussed the causes of the country's financial difficulties and measures taken by the Government to meet the situation. The immediate cause of the country's financial ills was the loss of national income through the decline in the prices of primary produce. Taking 1928 prices as a basis the loss up to the end of 1932 was £67,200,000. However, notwithstanding the fall in prices the value of the Dominion's exports was beginning to improve as a result of increased production. During the year ended June, 1933, the value of exports increased by £2,800,000 compared with the previous year. By this increased production the restoration of prosperity was assured as soon as prices recovered. The prospects of the wool industry were also very bright. There had been an important rise in prices and stocks were much lower tliau for some time.

The depression developed in 1929-30, continued the Minister, and since then Government economies and adjustments had been to the extent of £9,490,000. As cheap money was regarded by all economists as an essential clement toward recovery, the Government had sot out on a campaign to bring down all interest rates. Mr. Ransom reviewed the measures taken. He also dealt with the raising of the exchange rate and eaid the value of the higher exchange policy to the primary producer for the past seven months was £3,200,000 on the 15 per cent basis, and £5,280,000 on the 25 per cent basis. The Labour party's declared policy of guaranteed prices would involve making provision for £20,000,000 annually until prices recovered, continued Mr. Ransom. That approximated to the cost of the Great War. Contrary to the arguments of opponents of the hioh exchange the cost of living had not increased since the exchange was raised. The actual decrease m the cost of living was 11 per cent. ( The Minister also replied to Labour statements regarding the formation of the Coalition Government. At the conclusion of the meeting a vote of thanks to Mr. Ransom was carried with acclamation,