EXCHANGE QUESTION.

Press, Volume LXIX, Issue 20776, 9 February 1933, Page 13

EXCHANGE QUESTION.

CRITICISM OF MINISTER'S STATEMENT. (I"BESS ASSOCIATION TZLZGIUit.) WELLINGTON, February 8. The Associated Chambers of Commerce issue a statement in regard to the endeavour of the Minister for Finance (the Rt. Hon. J. G. Coutes) to show that the increase brought about in the rate of exchange by the interference of the Government is not unnatural, saying that it reveals the continued inability on the part of the Minister for Finance to appreciate tlie true position. ' The language of the Minister, it declares, is a contradiction in terms. The Minister attempts to show that the action of the Government is on all four 3 with the case of the British Government and the gold standard. "There is no parallel," declares the statement. "Great Britain was forced to abandon the gold standard because of the flight of capital, and because she soon had no gold to meet demands. New Zealand was never forced on sterling, the Government freely choosing to interfere with the exchange rate. "The Minister asserts that the Government must take an active part ' n assisting the process of adjustment. That will be readily endorsed, but i* the Government goes to the extent of interfering with business operations and economic processes, as it has done by the act of raising the exchange rate, then it would do far better to follow a role despised by the Minister, namely, that of masterly inactivity in matters where it must recognise that there are inevitable economic forces to be encountered." CHECKING SALES RESULTS. "More than two years ago," states Mr Frank Finney, principal of a wellknown overseas advertising firm, "ono of our clients, manufacturing a proprietary product, was employing a large sales force as well as samplos, windows, booklets, and newspaper advertising to sell Ms product. The sales were decidedly decreasing. "We started a test of advertisement to try to find an advertisement that would sell his product at a profit. His product boing 50 years old, known to everybody, and somewliut out of fashion, it was very difficult to find an advertisement that would pull sales. We consumed some time testing and chock, ina before we could find an advertise, ment that would effect the desired rc"U"ln January, 1930, our client, by our advice, eliminated his sales force entirely, cut out all samples, winnows, booklets, novelties, and every form of promotion except newspaper advertising The promotion ot his product was entirely and exclusively put up to the pulling power of a 02-lino newspaper advertisement. No other kind of advertising was used. Therefore the results which I am going to tell you about cannot be traced to any other promotional work or media but newsnaoer advertising. _ "In spite of the elimination of all promotional work and all other media, UTii spite of the hard times, and in She of the fact that the sales of h.s Suet were seriously declining, the P Ji.« for the 11 months of 1031 were 49.4 pfr cent ahead of 1030, and the cost of Brorttaniß and selling was 17 per cent, less." PROPERTY SALE. luvinff sold a farm of i outbu udi n3 s, on with B'oomed jesidonco nn Lfimport „ account of M ' s ® *" 'l'o partly-erected resitings ior terms.