HIGH EXCHANGE SUBSTITUTE

Evening Star, Issue 22382, 4 July 1936, Page 19

HIGH EXCHANGE SUBSTITUTE

GUARANTEED PRICE SYSTEM CAN'T IE DONE OVERNIGHT [Special to the * Star.’l WELLINGTON, July 4. Another positive declaration that at the proper time the existing high exchange rate will be dealt with was made by the Prime Minister (Mr Savage), who pointed out that the Government s plans were to provide a stable foundation for the standard of living of New Zealanders, and that there could be no stable foundation other than that based on what the country produces. “ The exchange rate,” ho continued, “is not to be dealt with until the Government is in a position to provide the alternative. That alternative is guaranteed prices for nil forms of our exported produce. This is not a thing which can be done overnight. So far we have only dealt witlr the dairy exporter, but it will be quite clear to anyone who gives consideration to it that the rate of exchange cannot be removed until a substantial substitute has been provided. The substitute we have is the guaranteed price system, which needs a good deal of machinery and cannot be brought into existence overnight. But the rate of exchange will have to come off. It is only a question of providing the alternative, and the time and method of removing it.”