EXCHANGE AND MARKETS.

Auckland Star, Volume LXVI, Issue 260, 2 November 1935, Page 18

EXCHANGE AND MARKETS.

The purpose of my previous letter was to point out that the exchange rate was a purely domestic matter, but Mr. Carradine seems to have missed that point. Bearing on my contention that the public of Great Britain is indifferent to our exchange rate is the reported utterances of Mr. T. A. Duncan at Hastings, which appeared in the same issue of your paper as my letter. He also stated that it would be impossible to lower the rate while other primary producing countries maintained it, and further that banking opinion in England is satisfied "that it is in the right place." I contend that all the criticism comes from or is inspired by the importers at this end, whose only concern is to regain lost trade. Our export trade to Britain during the last several years lias averaged in sterling value less than thirtylive millions. Our imports are around about twenty millions, and the interest bill on public indebtedness to England amounts to some nine millions, leaving an annual surplus of about six millions to pay interest on private debts, repayment of loans and company dividends to shareholders in England. One must not forget that the shareholders in our banks, insurance companies and larger stock firms mostly live in England. So the true balance would be only a small sum. The accumulated exchange funds in London are the result of importing firms holding money in New Zealand in the hope that the exchange rate will be lowered. Regarding our exports to England. One would get the impression that we are slowly bleeding that country to death by sending our produce to her markets and not buying back a similar quantity (in values) of her manufactured goods. But our exports to Britain are largely redistributed to other countries, andjf we were to establish direct contact with these various buyers it would make a material difference to the fifty millions favourable trade balance that Britain expects for the- current financial year. England fears that in ihe event of war her food supply will be cut off. If this were not a very real danger wo would hear nothing of quotas I and limitations. She is a manufacturing country and the cheaper cost of living logically means cheaper cost of production and a better chance of retaining the world's markets which is her chief concern. P.O'S.

WIDOWS' PENSIONS. All widows' pensions should bo on the same level. I am an influenza epidemic widow of 1918 with one son not earning enough to keep himself. A widow after rearing her children, worn out in health, receives no further pension; it does not matter if her children aro employed or not. In theso difficult times, wliero is the work for widows when hundreds of young girls am faced with hardship and aro forced to go to the Hospital Board like myself? I receive 3/3 for groceries per week. One cannot live on that. It does three days, and during the rest of the week acute starvation follows. My pension has been cut out for four years, and during that time I have suffered agony with acute poverty—not enough food to eat or adequate clothing. If 1 go to social workers I am told that too many are on the books and that there is nothing in clothing to fit. Widows should bo . considered during these depressed times when there is no work for them and their children cannot keep their mothers. Where does motherhood come in? ,1 have packed my swag and hiked through the Waitakere Ranges to the West Coast to get fish which I cannot afford to buy. NEW ZEALAND WIDOW.

AN EASY WAY OUT. , In reference to Mr. Allen's address you mention that his comments on land values are interesting, but he leaves the unanswered questions—How are property I values to be brought into line with the prices of the produce, and how is speculation to bo eliminated. The answer to these questions is clear cut. Firstly, by deflation of land values, in accordance with their capacity to produce; secondly, land values should be estimated only on their individual full capacity to produce, and taxed only on percentage of definite productive land held by the individual farmer. At present a 500-acre farm may realise approximately £80 per acre, a total sum of £40,000, which requires a big amount of production at a figure that will enable the producer to meet his interest alone, apart from the principal involved. It must be remembered that in a great number of cases twofifths of the individual farm lands are definitely unproductive, yet the initial price asked is based on the whole area. In this instance 500 acres at £80 per acre. Land must be 100 per cent to allow of one cow to the acre. As two-fifths of this total area are definitely unproductive, 300 acres only are left which increases the cost per acre to £133 per acre, a sum impossiblo to allow one cow per acre to meet. The second question: "How is speculation to be eliminated," can only be answered in the abandonment of freehold tenure, which automatically prevents speculation. Leasehold is the solution. FARMER JILES.

CAGED BIRDS. With reference to caged birds, may I be allowed space to tell of an incident which happened in our garden hedge recently. I was busy indoors, and suddenly it seemed all,the small birds in the district were let loose and having a fight. It lasted only a moment and on they went further afield, so I was not in time to see what had caused the commotion. A few hours later I heard that, one of the neighbours in the next street had lost her canary at the same time the bird fight was going on. ' It stands to reason a bird bred in captivity is not fit to let loose among wild ones and would soon bo killed. How many lost canaries and budgies reported lost are found alive I wonder? What I consider is inhuman is to sec several goldfinches or redtops, etc., cooped Tip in a small cage for sale, ''and I always wish I could buy them and let them fly away. I do not agree with encouraging birds to get tamo around the house since we did this, and later on I found a neighbour's cat was getting friendly. I watched it one day. It lay in a flowerbed near the door, and suddenly it sprung and caught one of our almost tamed little feathered friends. They were soon all gone, and since then I do not encourage birds or cats. BIRD LOVER.