THE EXCHANGE RATE

Press, Volume LXXIII, Issue 21986, 9 January 1937, Page 17

THE EXCHANGE RATE

■ to THE EDITOR OV THE PRESS. Sir— London financial circles continue to be interested in the New Zealand exchange question, and there is no doubt the manufacturers have been nutting their views before the non W. Nash, indicating that their desire would be for a lower exchange to facilitate Britain’s trade with this country. „ When the exchange was first arranged by the Coates-Forbes Government, at 25 per cent., it was done with the idea of helping the farmer, because of the low prices for wool and lambs. The ruling prices to-day make it quite unnecessary for this exchange to be continued, and possibly cur present Government will find no more suitable time to reduce exchange than at the moment, because all kinds of manufactured goods have risen anything from 20 to 40 per cent, during the last few weeks. Especially is this so with regard to woollen, cotton, flax, and rubber goods. It also covers most lines in iron, standards and fencing. . . Among other things it should be noted that the balances of London exchange at the moment are 44 mulions —greatly in excess of anything New Zealand may need. Therefore the Government has no reasonable excuse not to meet its election pledge? by bringing the exchange down, say 10 to 15 per cent, in one movement When the exchange is once dealt with, attention could be turned to the removal of the sales tax—another dection pledge yet to be fulfilled. Youis. GtC ” * FINANCE. ■ January 8, 1937.