EXCHANGE CONTROL

Evening Star, Issue 20998, 12 January 1932, Page 6

EXCHANGE CONTROL

PROTEST AGAINST INTERFERENCE TAKING 15 . FROM PRODUCERS' INCOMES [Per United Press Association.] AUCKLAND, January 12. An emphatic protest against the Government’s decision to control London! exchange at the present level has been 1 forwarded to Mr Forbes following a; meeting of the executive of the North Auckland Dairy Companies’ Association.' TLj letter states: Recent, experience with London loan renewals has proved that under the free operation of supply and demand exchange rates would rise a further 15 or 20 per cent. The Government’s decision, therefore, amounts to further taxation of all primary producers to the extent of some 15 pep cent, on their gross income. The whole! country depends on the returns of the primary producers, who, need greater price encouragement. This would have come quickly in the shape of a higher, exchange rate hut for the Government’s intervention. Regarding the argument that with high exchange the Government would find it costly to obtain funds in London, tho association says the higher exchange premium distributed among the producers would be more helpful to the country’s restoration. The association; urges reconsideration of the decision.