EXCHANGE AGITATION

Grey River Argus, 20 February 1932, Page 5

EXCHANGE AGITATION

VARIOUS VIEWS Effect of Increase WOULD MENACE CITIES. (Per Pregs Association). WELLINGTON, February 19. The Mayor (Mr Hislop) made an important statement to-day in regard to increasing the exchange rate to 25 per cent.

He said that Wellington City, Detween now and March 31, 1933. had to transmit to London by way of interest and sinking fund, £617,800, and if the proposal were carried to increase the exchange, to the artificial figure 'of 25 per cent. Wellington would be called to find by way of exchange £154,450. That would mean an increasb in the rates of 30 per cent., an outrageous suggestion in times such as the present when the citizens could barely pay the existing charges. To meet the amount out of revenue would leave only £45.000 to run the city, an obvious impossibility. Taking .Auckland. Wellington and Christchurch, the exchange would be not loss than £282,125, or £169,275 more than the existing rate. The Mayor said that he was not convinced the farmer himself would in the long run receive much benefit. It was possible that vendors and mortgagees might gain by payment of some arrears of interest, or in return of capital, but he could not see why for their benefit the rest, of the community should suffer what seemed to be intolerable hardships.