EXCHANGE CHARGES.

Greymouth Evening Star, 31 March 1930, Page 9

EXCHANGE CHARGES.

[TO THE EDITOR.] giP, Will you allow me space to discuss what is affecting our economic condition, its cause and remedy. The rate of exchange between London and New Zealand is £3 12s 6d per cent.; if that is not to strangle trade, why is so high an exchange rate charged. The Banks control our system of exchange, and, when they increase tho interest on exchange, workers are thrown on the market. The higher the rate of exchange, the more unemployment and poverty takes place. Who benefits, but the Banks, when they increase the rate of exchange? Why are our Banks so prosperous in depression? Because they have increased the rate of exchange for the benefit of their own institution, and at the disadvantage of the rest of the community. Our Governments grant the Banks a license to trade under certain conditions, and I think ‘the time has arrived when the Government should go to the associated Banks and tell them that they will have to lower their interest rates, or the Government will take their charter away. I do not think that it would be illegal or unconstitutional of the Government to commandeer tho bullion that is in the Banks, and issue paper money to the people, on tho same conditions as the I Banks at a minimum rate of interest A low rate of interest is conducive to the prosperity of any country. Yours

ai J - WARD, Aliaura, March 29., 1930.