EXCHANGE RATE

Evening Post, Volume CXV, Issue 138, 14 June 1933, Page 10

EXCHANGE RATE

TARIFF" FARMERS' CONTENTIONS"

Brief referenco .totho .exchange rate \vas made today J>y .this, secretary of the :Farniers?,, Union (Mr. J. Pow). in £ statement to the Tariff Commission.; , ; Ho said :that the advisability of the high 1 Exchange, did not fall within the scope of' his evidence, but the effect of tho exchange did. > ' • '■.'.;. "Tho farmers, aaid Mr. Pow, maintained thkt . the existing exchange •acted as a protective tariff ;to tho benefit of the New. Zealand manufacturer, and^in this view the eminent economist Sir Henry Strakosch" concurred. > In a recentutterance at Ottawa.-con--eerning tho high exchange^ Sir Henry was reported to ■ have • stated:—"The effect of such development would •be to give the country which has allowed its currency to deprociate a definite advantage in the cost of production, and thus in its competitive power ; over producers 'in other parts of tho British Commonwealth. A depreciation of currency in these circumstances is equivalent, to an extra.tariff against thp rest of the Empire. It would tend to restrict .trade, and abnormally to stimulate some of its industries. Such a development is clearly contrary to the \v;hole spirit of Empire co-operation, and the surest -way of destroying it." * . •It had been shown quite clearly that the ; secondary industries ,were;, being pampered'at the cxponse of consumers, 'fin fact' we make ,bo-Id to st'a'to that if Avould"pay tlie public,to have many" of burv factories closed 1 together and pension the operatives off at their present rate of wages," said Mr. Pow; "We submit that the first reduction in tariff rates with Great Britain should be one that would" cancel the protective effect of our high, ex-, change Tate. Unless this is done it is difficult to ace how we can expect to retain the goodwill of .the British market." ' ■ ■ ■