THE EXCHANGE "EEL" AND W. GRAY.

Auckland Star, Volume LXVI, Issue 219, 16 September 1935, Page 6

THE EXCHANGE "EEL" AND W. GRAY.

Mr. W. Gray is "afraid" that another correspondent did not "even know" that Britain was deliberately depreciating her currency. What a statement to make! He is like the eel which started feeding on its own tail; he knows, or should know, that New Zealand, depreciated the £1 2o per cent as against the English £1, which was already depreciated in America under 12/, making the New Zealand £1 under 9/. What is the real value of the New Zealand £1 to-day? Even Mr. Gray must admit that commodity prices are the bedrock test of values. In England meat, fruit, vegetables and milk are dearer on an average, but the milk is milk. As against that, New Zealand pays more for hardware, boots and shoes, bread and various small items, but taking it all round, since the raising of New Zealand prices a few months ago our prices work out on an average equal to English prices over the whole scale. In regard to rents, board, rooma or flats the prices are about equal, enabling the tenants to grow foodstuffs and fruit. The statement that New Zealand wages are much higher than in England has no foundation; offices or shops, factories or domestic work are very little different. There is not the remotest practical reason for valuing the English £1 25 per cent higher than the £1 in New Zealand. Let Mr. Gray deny these facts if he •can; let him keep to plain, honest statements and let him carefully examine the position, and then if he is a sincere man he will have to admit that the "high exchange" in New Zealand is a mistake and will work to remove it. L. CARRADINE.