HIGH EXCHANGE.

Auckland Star, Volume LXVI, Issue 275, 20 November 1935, Page 8

HIGH EXCHANGE.

IMPORTERS' CRITICISM. EARLY REDUCTION URGED. Criticism of the high rate of the New Zealand exchange 13 contained in the annual report of the New Zealand' Importers' Federation, which is to be presented at tho annual general meeting of that body in Wellington on November 25.

"The importers of New Zealand have always bceij vitally interested, in these matters and the federation has taken an active part in educating the consuming public as to the cost and likely effects of the controlled exchange," states the report. "In view of the decision of the Reserve Bank, which has had to take over the burden from the Government, that the rate would remain at the present level for a considerable time, your executive refrained from pursuing the question. The position to-day is different from, the time when the currency was first depreciated. We were then forced to accept a position which we considered entirely unjustified; the duration of these conditiiffifcs^pX' o, " so long a period has brought about a set of circumstances which must affect our consideration of the matter. We should not abandon the ideal that the New Zealand pound should have the same value as a pound sterling. This should be a fundamental, the attainment of which would enhance our prestige and keep us on the same financial level as Great Britain. Our Own Business. As is usual at this time of the year, we have read in the newspapers the opinions of travellers returning from Great Britain. The majority have been at some pains to emphasise the fact that Great Britain has not complained against New Zealand for depreciating her currency. Our president made personal inquiries in this connection in Great Britain towards the end of 1034, and his experience was that the people of Great Britain regard our exchange policy in the same way as they regard our tariff policy. Whatever wa do here is regarded as our own business, but we must not be astonished if, as a result of the barriers we put up against importations, Great Britain adopts measures wihch are not so favourable to New Zealand as we might desire. "It must not be taken for granted that in this case silence means that the people of Great Britain agree with our policies. Objections that are not voiced are a far more serious menace to us than emphatically expressed complaint. It is urgently necessary that the consuming public of this Dominion should be given some relief in this direction, aJid also in a lowering of Customs duties, many of which are excessive. The fact that there are at present industries being fostered in New Zealand under the false protection of the artificial rate ma.kes it all tho more necessary that early action be taken for a gradual scaling down."