"GENERAL BENEFIT"

Evening Post, Volume CXVI, Issue 84, 6 October 1933, Page 12

"GENERAL BENEFIT"

HIGH EXCHANGE RATE MR. KYLE IN DEFENCE The claim that the raising, of the exchange rate had had a beneficial effect on the economic situation of the ; Dominion generally was made by Mr. JH. S. S. Kyle (Government, Riccarton) jin the course of Ms speech in the Address-in-Beply debate in the House of Representatives last evening. > Mr. Kyle said that the standard of living in New Zealand was higher than in any other country in the world. It had been brought about by the high prices which had been received for the Dominion ?s primary products. Mr. Kyle said that he had been informed by one manufacturer that he had benefited by the raising of the exchange, and it was truo to say that the Government's action had improved conditions generally. Had the adverse motion regarding the exchange policy been carried the: rate would' haye■been brought down- in one hit, and the bottom would have fallen out of the country. Under the 25 per cent, exchange rate one factory was receiving B:{d per lb for butterfat, but on a sterling basis the payment would have been 7d per lb. On the gold standard the price would have been 4|d per lb. As far as his' own electorate' was concerned he !did not know of a single case of starvation. ■ ■ Mr. W. E. Barnard (Labour, Napier): How do you define starvation? Mr. Kyle: People hot getting sufficient food. Mr. P. Fraser (Labour, Wellington Central): There are many in that position. Mr. Kyle said that he realised thatj there were hundreds on the bread line, but he did not know of anyone below the bread line.