THE WRONG WAY

Gisborne Times, Volume LXXIII, Issue 11877, 23 February 1933, Page 4

THE WRONG WAY

FARAIER NOT AIDED "BY HIGH EXCHANGE

LONDON BUTTER POSITION CLEARLY FORESEEN • Press Aasoeiat iuu.. WELLINGTON. Feb. 22

A reply was sent by the Businessmen’s committee to Mr Coates to-day.

They say they already had directed attention to the fact, that exchange depreciation was very liable to affect the market for the country’s exports. This was particularly likely to happen, they .'think, in the case of a country such as this, .whose only important market at present- is glutted. When sellers are in a weak position and buyers in a strong -one, there is a tendency for any export

bounty to pass to the buyers in reduced sale values.

They do not suppose if would be contested that the exchange depreciation policy is- not only to give a. bounty to exporters, but- also to impose a serious handicap on British manufacturers exporting to New Zealand. It seems only natural that British farmer,; should resent the dumping on the Home market of bounty-fed dairy produce at less than 'the cost of production, while the tact of exchange depreciation, in reducing British exports will, at the same time, deprive us of the sympathy of British- industrialist's and incline them, to gire more sympathetic consideration to the demands of their own farmers. It, was only natural that, such a situation should be created. It- was clcgrly foreseen and publicly expressed by the committee on a pievi ous occasion, and they think a seri ous load of responsibility lies on the shoulders of the Government fot bringing about, such a. situation, m which the sympathies of the British market, both import and export, are being so disastrously alienated. In these circumstances the committee resents the imputation that it is doing poor service to- New Zealan . They consider that in fighting this is■sue tlfey are acting in the interests of the country and endeavouring counter-balance what they Dunk is a wrong method of assisting +he primary producer. .