ASSISTANCE TO FARMERS

Evening Post, Volume CXV, Issue 38, 15 February 1933, Page 8

ASSISTANCE TO FARMERS

(To the Editor.)

Sir,—lf I may make a few remarks anent the present exchange controversy: I cannot understand why the Government has not tackled the problem of financial assistance to farmers from the capital-in-vestment side, instead of the income-earn-ing side. I.fail to see what vital economic objections there are —considering; the country's circumstances —to an internal loan of £4,000,000, to be underwritten and largely subscribed for by the Associated Banks. Interest at 3% per cent, could be provided for for the 'next five years by capitalising a portion of the unemployment tax, as already suggested by previous correspondents. The Government's action in raising the exchange rate is analogous to an attempt to fill a tank which is rotten with leaks round the top half, by increasing the inflow of water through the pipe—instead of replacing the rotten iron with new. The point is, if Mr. Coates and Mr. Forbes could induce the banks to raise the exchange rate, why could they not njake a job of it and get an internal loan floated through them? Too much respect is paid by the powers that control New Zealand at present, Mr. Editor, to academic considerations of economic principle—and in the meantime thousands of New Zealanders (including our growing citizens of the future) are suffering. During the Great War, our country, did not hesitate to take the most drastic and heroic measures to help save civilisation; similar measures are now just as necessary.—l am, etc., F.H.E.C. February 13.