HIGH EXCHANGE RATE CRITICISED

Press, Volume LXXI, Issue 21512, 29 June 1935, Page 13

HIGH EXCHANGE RATE CRITICISED

LABOUR LEADER'S ADDRESS (I'BttSS AHBOCU7IOB TItt.EOE.AU.* OFOTIKI, .Tunc 28. In an address to a large audience at Opotiki last night, the leader of the Opposition (Mr M. J. Savage), dealing with the high rate of exchange and its consequences, sta.ed that a recent official statement covering the activities of the six trading banks showed that the London asses of tnose banks had grown from £8,021,53 a on July 30. 1931, to £10,203,133 on April 2D, 1035. The same statement showed that the total overseas a.'-sets of these banks had urown during that period from £17,181,515 to £25,3:8,017. Mr Savage said if was cjear from these figures that the high rate of exchange was having a detrimental effect on trade with Britain in particuiar. and on our ex.ernai trade in general. While our credits were accumulating in London and elsewhere we needed them in New Zealand. The high rate of exchange must interfere with Britain'i sales to us, which, in turn, must act as a brake on our sales to Britain. The figures rela ing to the trading banks reflected only part of the problem as the Reserve Bank also had huge accumulated credits in London. The commonsense way to help the farmers was guaranteed prices for their products. Such a policy would provide security for exporters and at the same time clear the way for a' gradual reduction in the rate of exchange, thus removing the present barrier to our trad; **ith Britain, A vote of thanks was passed to Mr Savage. _