DEFENCE OF HIGH EXCHANGE

Evening Post, Volume CXX, Issue 116, 12 November 1935, Page 19

DEFENCE OF HIGH EXCHANGE

■ —-— ♦ (To the Editor.) Sir,—"K,G." .in Thursday's "Post"' states that world prices for all goods— primary •" :and manufactured —have fallen, since the New Zealand exchange rate was increased. He says that the British manufacturers' costs had fallen by roughly 30 per cent., so that the fall in prices was a natural result,-and New Zealand simply received the benefit of this world drop. Unfortunately for "K.G.'s" argument, the facts are otherwise. I quote below the "Economist" index numbers ,of British wholesale prices (in sterling) since 1928. . Base 192" equals 100. Index Number. (All Commodity = • ■ '..•- • . Groups.) '. End December,- 1028 ..• 95.0 ...End, December, i<)2!) 88.S ■'. ; End December,' 1930 C 8.7 ■••'■ -'iErid December,- 1931 <i">.B ■ 'End December, 1932 lil.l ■ ■■•January 25, IS33' 1i1.2 End December, 1933 O3.!l JEnd December, 1031 «3.T End March, 19.15 Gli.l End June, 1933 BS.I . End September, 1935 09' Kiul October, 1935 71 *X.Z. .exchange rate raised January 20, 1033. It will be seen from the above figures; 'that instead of falling 30 per cent., as "K.G." states, British wholesale prices have increased steadily from January, 1933, up to the present time, and are now 16 per cent, above the January, 1933, level. The drop in prices referred to by "K.G." took place before, not after, the raising of the New Zealand exchange rate—and this fact destroys the whole basis of"K.G.'s" argument. ' T leave it to your readers, Sir, with the above authoritative figures before them, to judge for themselves whether it is "K.G." or myself "whose proofs are so sadly incapable of bearing the light of scrutiny."—l am, etc., FAIR DEAL. fro the Editor.) Sir, — I had intended answering Mr. A. D. McLeod's letter in "The Post" of November 6, in which he asked "Equity" or some other correspondent for a reply, but after reading "'K.G.'s" letter in Friday's "Post" I will be content to say that I fully endorse what he has written. Now that it has been shown that sufficient has been subscribed annually by the New Zealand consumers to pay the whole of all farmers' interest on mortgage and interest on bank overdraft and advances from stock and station agents with £6.000,000 left over to pay wages why is it necessary to maintain low wages for a 70- or 80-hour week for farm employees'? Surely here is a case for urgent examination and immediate alteration. If this £12.000,000 annually, should not satisfy the farmers Mr. Coates has arranged a little extra according to his speech at Paparba on November 7, 1935. Here is the little extra: "An extension of the B2 scheme subsidies for improvements to dairy farms, covering subsidies for the erection of woolsheds, implement sheds, and other farm buildings, and subsidies for farm and orchard machinery and implements of New Zealand manufacture, to apply to all work commenced I before April 30, 1936. The subsidy on I implements would be £2 for the first £10." (Only 20 per cent.) I suppose the people of New Zealand who read this realise that it is they themselves who have to pay for all this, and they realise that it is themselves who have to find another £12,000,000 to £14.000,000 this year for I continued high exchange, but 'do they realise where they are to get the money from to put in the collection plate on behalf of the farmers?—l am, etc., • EQUITY. THE VICAK'S DILEMMA. TOLD BY "PUNCH" CONTRIBUTOR. Chorlcy Wood, England. Mr. D. A. Gulliver, a regular contributor to "Punch," lias forwarded from England another order for Baxter's Lung Preserver. He mentioned incidentally that lie was at a friend's wedding, and the vicar who was conducting the service was so hoarse that, lie could hardly make himself heard. Before going to the wedding breakfast, Mr. Gulliver, realising the disadvantage that the vicar was under, very thoughtfully went home in his car and got him a bottle of "Baxter's." Mr. Gullivei\stales that after giving the reverend gentleman a dose or two of "Baxter's" he was able to make his speech at the breakfast with a clear j and resonant voice. So delighted was the -vicar withthe results of, • taking "Baxter's" that, to use Mr. Gulliver's own expression, "he sang its praises like a psalm." Candidates for Parliament, as well as parsons and all public speakers, will find "Baxter's" invaluable for hoarseness, tiredness, and loss of voice.— Advt, I