FREE EXCHANGE URGED

Grey River Argus, 20 February 1932, Page 5

FREE EXCHANGE URGED

By Chamber of Commerce MR. J. B. NORWOOD'S CLEAR STATEMENT. (Per Press Association). WELLINGTON, February 19. Remarking that some misconceptions appear to have been circulated from some quarter, Mr J. B. Norwood, President of the Wellington Chamber of Commerce, to-day stated: —“The Chambers of Commerce have ever been consistent in their objections to State or local body interference with private enterprise and ordinary trading, and th? extreme step of what might be termed a commandeer of the whole country’s)' export production for protecting the Dominion’s credit, to the extent of some fourteen millions was one that has appeared somewhat drastic; and, while fully supporting that the Dominion’s credit must be kept unblemished, nevertheless this docs not dispose of the contention that other steps might have been followed to achieve the same end. Definite expressions of opinion have been made by representatives of the banks that the position is such as not to warrant any increase above th? present rate of 10 per cent.” “Contemporaneously with the representations that have been made from the Chambers of Commerce against any artificial fixing of the exchange fates, and against the closing of the market for exchanges, there has been controversy from other sources in advocacy of a pegged high exchange rate. Many advocates of this latter confuse, as being synonmous terms, the question of (a) free exchange, and (b) the rate, say, 25 per cent, or 37 per cent.

“The persistent propaganda in this direction has no connection with the steps taken by the Chambers of Commerce to endeavour to have cleared up matters arising out of the Credits Pool and the fixing of a non-competitive rate of exchange, and the Chambers of Commerce still stand for the principle of non-interference from the Government and they .are definitely against any artificial pegging of the exchange rates. ’ ’ NELSON OPINION. NELSON, February 19. The Nelson City Council has passed a resolution that, in its opinion, any artificial fixing by the Government of the exchange rate would be’ detrimental to the interests of the Council, and of the Government, and also inimical to the welfare of the Dominion as a whole.