ALTERNATIVE ROADS

Evening Post, Volume CXVI, Issue 84, 6 October 1933, Page 9

ALTERNATIVE ROADS

GOVERNMENT'S POLICY

HIGH EXCHANGE DEFENDED

Support for the Government's policy was given by Mr. S. G. Smith. (Government,- New Plymouth) /whoa speaking oil the Address in Beply in the House, of Representatives today. • : . Mr. Smith snid that taking the Dominion .as a, whole'there-was no evidence of malnutrition among school children. Be*ferring to. criticism by/theLabour member for Westland (Mr. ;J. O'Brien), he said that no teachers had yet been dismissed as a result, of conditions.- '■'• The "country had trained too many teachers, and a rationing system had been introduced. At tho end of 1933 it iras estimated that there would be 52iS-. unemployed teachers, with a further iOO students from training colJegesjvWaking a total of 900 teachors •who would not have permanent employment. each -yearamounted to between 470 and 500. Defending the Government's -high exchange policy, "Mr. Smith said that surely it must be obvious that in the position'that arose before-last Christmas there were only two or three roads which vthe Government could travel. One ¥as the Labour Party's road, which'lrWd been found on investigation to be impracticable. Another road was a further reduction of 15 per cent, in wages and salaries. If the rate of exchange had not been raised,-some other •steps would have had to Tie taken. "Would any member be prepared 'o stand up in. the Houso today and^afl--■voeate a further increase in the staggering taxation1 of the country ? The high1 exchange 'Tate had had a beneficial effect. In his district, where' large quantities of butter and cheese were produced, there had been a very definite advantage from the raising of the exchange. It had enabled farmers to meet their creditors, and'generally had ■put more money >|nto circulation. ■Mri Smith' expressed the-opinion that' a clear and comprehensiye"statement should be made regarding,.the wheat position. He deprecated party feeling during the present difficuTt'times, and suggested that •• wo ought to be together as a national Government." • '\