OVER 15 PER CENT.

Evening Star, Issue 21315, 20 January 1933, Page 8

OVER 15 PER CENT.

RISE ON IMPORTED GOODS MERCHANTS INCREASE THEIR PRIGES " If I were to give you my opinions you would not publish them," said a merchant, on being interviewed. "They would be so lurid that, in fact, you could not publish them." The raising of the exchange was one of the most serious blows yet encountered by the business community. An exceptionally heavy fall in imports would result. He had only one feeling to-day, and that was a deep regret that he had not removed his money from a business undertaking. The merchants this morning increased the prices of imported goods, stated the merchant. Whether or not the shops also increased their charges to customers was not a matter that concerned the merchants, but the retailers would be billed with the extra costs when they ordered replacements of stocks. In effect, said the merchant, the increased rate would mean the raising of prices on imported mei'chandise by over 15 per cent. PROTEST FROM CHAMBER OF COMMERCE QUESTION SHOULD BE LEFT TO BANKS The policy of the Dunedin Chamber of Commerce in regard to the new development was discussed at a special urgent meeting held this afternoon, when it was agreed to send to the Asocisated Chambers and the Wellington Chamber of Commerce the following telegram:— " The executive" of .this chamber places on record its protest against the action of the Government in interfering with the exchange, which should be left entirely to the banks." In anticipation of a possible rise, the secretary of the chamber had ♦telegraphed to the Associated Chambers as follows:—" Will you kindly advise what steps you are taking regarding the proposal to increase the exchange rate? This chamber is strongly in favour of the matter being left to the banks. The Prime Minister should be urged to adhere to the original decision to leave it to the banks."

, The following reply was received:— "The president is holding a meeting with executive members to-morrow (January 20), after which it is likely that a public announcement will be made." This'means that the meeting in Wellington was held to-day, and. that the Dunedin resolution will most likely have been received in the course of it. ~ MANUFACTURERS' VIEWS RAISING OF EXCHANGE A DISTURBANCE TO BUSINESS "The rise in the exchange will mean decreased importations, with a consequent loss in Customs revenue to the Government," states Mr James Hogg (president of the Manufacturers' Association)-. "Although tlie manufacturers of the dominion may secure increased output by this curtailment of importations, they have definitely, opposed an arti-ficially-increased rate of exchange because of the drastic disturbance it will cause to business generally. The result must also be, unfortunately,- a raising of the costs of goods to the New Zealand consumer, and the Go? vernment may be forced to impose fresh taxation in order tp meet the increased burden on remittances to London against our overseas debt. " It appears extremely doubtful if the benefits to the primary producer can off-set the burden which will be added to the rest of the community as a result of the action now taken." " POSTPONING EVIL DAY" LAND VALUES MUST COME CQWN The manager of an importing firm stated that the measure was merely an attempt to postpone the evil day. The Government, which was a farmers' Government, was making an endeavour to keop the value of land up, but it was obvious to anyone with an intelligent grasp of the situation that the values would have to come down. . "Of course, it will affect our business." he added. " The landing charges will be increased by 15 per cent."