Exchange Rate Increase

Dominion, Volume 26, Issue 183, 1 May 1933, Page 11

Exchange Rate Increase

Sir,—Mr. G. V. I'carce, of Waiioiara writing in your paper to-day regarding the exchange rate increase, makes some wonderful statements, but they I’equire proof. In Hie first place he says 25 per erm. advance on 68/- to 70/- per cwt. niul-i” the price 93/- to 95/-. There can lie im question of 25 per cent, discount off tin latter price. The advance is on Hie former, xvliich would work out at 85/to 87/- per cwt. He says that owing to the increase in exchange in Australia the imports have gone up so that £5 million Customs duties additional has been received. Can he give the figures lor Hie periods and his authority? In a recent issue of the “Bulletin” it was stated that imports of recent years of £2OO odd millions had fallen to £4O odd millions and the “Bulletin” is usually right in its figures. Jias he forgotten the additional Customs duties recently imposed on Australian imports which might account for a rise in duties, but here again, can he give tiie figures and authority on which his statement is based? As to Hie small dairy farmers in New Zealand being saved by the rise in exchange, it is generally agreed that they do not reap the benefit, and considering that prices have fallen since the exchange was raised, and butter to-day is selling in Wellington at 71d a lb retail, perhaps he can show how this statement is accurate. Such defence of the high exchange rate must do the cause a lot of harm, and that when it requires every decent logical argument it can get to even endeavour to justify it. Perhaps Air. I'carce will explain.—l Wellington, April 28.