OUR NAME AT OTTAWA

Evening Post, Volume CXIII, Issue 142, 17 June 1932, Page 8

OUR NAME AT OTTAWA

EFFECT OF EXCHANGE

QUESTION OF INTEGRITY

The effect of a high exchange rate on New Zealand's-standing at the Ottawa Conference was mentioned by Mr. J. T. Grose, tho general' manager of the National Bank of New Zealand during the course' of an address to the Victoria University College Commerce Society ,last night, "New Zealand will i'mcot tho other countries at Ottawa as a very small and relatively unimportant country," he stated. "If the Export Licensing Kegulatioris are; lifted before the Conferonce concludes, and if, as. a consequence, an artificially high rate of exchango conies into. force, our status willl be that of a very small country, with an artificially depreciated currency, and a newly-erected tariff barrier against all comers. We would go to tho Conference saying: 'We want to arrange for favourable terms, especially as regards our export trade, but as regards the export trade of other countries with vs 4 we have seen fit to put obstacles against that; and as regards our overseas credit, we have seen fit to sacrifice a good deal of that, too.'" , "J leave it to you to judge whether ,all this would strengthen or weaken our power to come to satisfactory ariangements at Ottawa. / Moreover, the current arrangements for Britain's preferential trading relations with' us 'will expire in November ' next.. We hope that we shall'be able to' renew, a.nd evon to strengthen, the existing preferences, and the best way we can ensure this is to keep our own house in order so far as we are able.

"T am firmly convinced that to achieve'this end our wisest courso is to maintainthe integrity of our exchange and credit position. I am further convinced that this can best be done by adhering to the rate of exchange which is in accordance' with our balance of trade and London funds position."