Burden on Importers

Dominion, Volume 26, Issue 104, 26 January 1933, Page 11

Burden on Importers

Sir.—Referring to higher exchange, “Soldier Settler” objects to the sharp rise in retail prices, and accuses the business community of profiteering. There would be some weight in his argument if all retail stocks were already paid for, but what of the merchant who pays for his imports by bills? He has now to pay for all goods delivered for the past three months, plus 25 per cent, exchange, and he has no redress for all the goods he has sold on the basis of a 10 per cent, exchange. , , . The fact is that the indentors, relying on the definite statement of the Prime Minister that exchange was a matter for the banks, have carried on business by bills. The Government having. now reversed its policy without warning, they have to find 15 per cent, additional on all overseas debts for the benefit of the farmer or his financial backers. The exchange has been raised on the advice of three university 'professors, with no business experience, against the considered opinion of the Associated Banks the Chamber of Commwee, and the entire business community, and the country must bear the consequences, but I maintain that merchants should not be robbed and that the Government should forthwith pass legislation enabling importers to liquidate their debts at 10 per cent, exchange. If business men cannot rely on the definite words of the Prime Minister, then the business of import agents becomes a huge gamble. “Soldier Settler” refers also to Australia. I would refer him to your leading article to-day, iu which you state that Australia’s floating debt recently had reached the appalling total of £B7 millions. What will New Zealand’s debt be when the high exchange policy has run its course? —I am, etc.. INDENT MEROHANT. Wellington, January 25.