HIGH EXCHANGE FAVOURED.

Press, Volume LXVIII, Issue 20730, 15 December 1932, Page 8

HIGH EXCHANGE FAVOURED.

BENEFIT TO DOMINION

PREDICTED.

VIEWS OF A WELL.KNOWN

MANUFACTURER

Both a primary and a secondary producer, Mr G. F. Davis, head of the Davis Gelatine Company, which is established in Australia and New Zealand, is a firm believer in the benefits of a high exchange policy. In his opinion it would assist New Zealand ju'st as it has assisted Australia.

"Our firm's export trade is still growing, and it has heen very materially assisted by the high rate of exchange in Australia," said Mr Davis, in the course of an interview. "What wo have lost in Australia and New Zealand through the depression has heen mado up by the increase in our exports, and the high exchange is undoubtedly the factor which has made that possible. In supportiug high exchange, I speak with knowledge of both the primary and secondary industries, for apart from the gelatine business I grow sheep and wool and wheat.

"I think high exchange would benefit New Zealand as it has helped Australia. I know the farming industry in Australia very well, and two weeks ago in that industry they had the busiest week in 15 years. That was because the industry had been stimulated by the high exchange, which made possible the profitable sale of leather in the markets of England and the East. "The average banker will tell you that high exchange means an increase in the cost of living. That may or may not be so in New Zealand; but it certainly A"as not so in Australia. Since 1 ( J29, exchange in Australia has been standing at 25 per cent, on Britain and 58 per cent, on Africa, and the cost of living has dropped during that period by at least 25 per cent."

Mr Davis said that conditions generally were decidedly better in Australia. The industrial turnover had increased by quito 20 per cent, since Juno last, as compared with the second half of last year. There was a much more cheerful outlook, with less unemployment, and a freer movement of money. All this was tho result of tho Australian policy of protecting and encouraging local industries.