A FREE EXCHANGE.

Auckland Star, Volume LXX, Issue 164, 14 July 1939, Page 6

A FREE EXCHANGE.

There are in \ T cw Zealand to-day adweateft of a free exchange and promising the farmers a benefit if it were introduced. The farmer who did receive a benefit from the raising of the exchange may be easily misled by such specious promises. Xew Zealand ha-s had a pegged exchange throughout its history, first at £100 Xew Zealand to £100 sterling, then it was raised to £110, and lastly to £123, but since imp »rt restrictions were imposed there has been gambling. and importers are j>aying as high as £140 for £100 sterling, and the increased cost will be passed on to purchasers of their goods, including farmers. During the depression a world economic conference was held in London, at which sixtytwo nations were represented, endeavouring to find a means of ending the depression. On acconnt of selfish interests, no agreements could be reached, but on one point they were unanimous, the necessity of stabilising exchanges. While the eonference was sitting a gang of international financial crooks, bv manipulating exchanges, pulled off a r-nyp that yielded them a profit of £10.000.000. To overcome such disturbing influences. Britain, France and America set up what wa = called equalisation funds of some £200.000.000 each to prevent tampering with their exchanges. In ,-pite of thc-e huge funds with which the Governments try to fight the gamblers, exchanges rise and fall week by week, manipulated by men who see a glittering prize of perhajw £10.000.(11)0 if they are successful. To demand a free exchange for Xew Zealand in the hope that the farmer might hold his own when opposed to those professional gangsters would be like putting a schoolboy into the boxing rinar to fight the "Brown Bomber." " C. R. McDOXALD.