READERS OPINIONS

Gisborne Times, Volume LXXXII, Issue 12254, 9 April 1935, Page 3

READERS OPINIONS

WHY IS IT? (To the Editor). Sir,—How is it. Sir. that we hear so many reasons advanced re the low price for- products sent to England? Old New Zealanders who have lived in England for somo years and return. also those Who go on tour, return with the same laic. 'Then there ar° others who praise our butter. Jamb and mutton. Considering that wo send the host only op the above, and have tho latest machinery in our dairy factories and an army of ins pec, tors and dairy- experts and the hulk of our export butter is graded “superfine,”' what is tho matter with our grading, our good Jersey herds,, and finest pastures, and finest climate hi the woifdf I think Sir, a l°t of propaganda goes on. in England to belittle our produce and so keep the prices down. Odnld wo not. do a little “palm .greasing” and so end at] this “Tommy rot” about the poor quality of New Zealand produce. I am. Yours etc: NEW ZEALANDER.

BANKING SYSTEir (To the Editor). Sir, —Air Daniel says “The New Zealand Central Reserve Bank purchased ,£4,000,000 of gold, issued £9>000,000 of legal! tend'o r notes- and’ obtained £26,000 000 of sterling exchange with a capital o£ £500.000 pins a. ' Government guarantee of £1,000,000 — ‘in other words it was able to purchase £3O with a 10s note”—Aceept- ' ing these figures as correct, here, is the transaction as wo see it from published information. The League has no other means of knowing the position than has Mr Daniel. By i! aw. the banks hqd to transfer their gold in New Zealand to the Re-, .serve Bank and, in return, were credited in the Reserve Bank for the amount, just as Mr Daniel would 110 credited at his own bqnk if he paid in £lO in sovereigns. Then the Government had £26,000,000 (Mr. Daniel’s figure) sterling credit in London. They wished to use it hero, so they handed the Reserve Bank this credit and asked them to transfer it. or part of it, for use in New Zealand, exacS'.y in the same wav that Air Daniel, if he had £3OOO in London:, could: pay it into the Bank of New' Zealand there and have it made available in New Zealand. The transaction was nil ordinary business transaction, but on a. larger scale. There wa.s no creation | of on-edit- ‘‘out of nothing.” Wo are. ! Yours etc. N.Z. WELFARE LEAGUE Wellington, Apl. 5.