CORRESPONDENCE

Grey River Argus, 9 October 1934, Page 8

CORRESPONDENCE

THE DEMOCRAT PARTY. (To the Editor). —To satisfy the curiosity of the Rt. Hon. J. G. Coates, we can him the element belling the Democrat Party is that of true democrats who depend for theii success on the intelligence of the voter to distinguish between a poli’ey of honest endeavour to restore tu the people of New’ Zealand their right’s in Parliament and the restoration of the Nw Zealand pound to the position it held amongst the currencies of the world pri'or to the regime of the present Government, as against the Government by Order-in-Council and by interests outside the House and •he inflationary camouflage of 'the past two years. We bow, however, to the superior knowledge of Mr Coates as a student of the N.R.A. and its B’uc ’Eagle methods, as we recognise the same deflationary effects in New Zealand ere the outcome of the same speci'es ol brain trust advocacy sunrounding Mr Coates that led the President of the United Stages of America so tar fiKtray as to wreck all attempts at world recovery during the London Conference last year. Lot us now’ endeavour to fol ow Mr Coates iii't’O his Exchange mirage. The suggested minimum price level on butter dues n ct’ i'mply a permanent I nnus on all primary products irrespective of what their prim levo' may- be. This is (lie great difference between the presen' Exchange policy ”s aga’nst a minimum pri’ce level. Li spite of the great improvement in the price of wool, beef and mutton during the past year, the Exchange Rate has s/ill to be paid by the unfortunate' consumer business man. and the butter producer whose once is down to zdro must contribute his mite to swell tire fortune of his more -fortunate brother. If the p’ice level of commodities rises. the farmer does not need assistance, ami he is too honest to expect it

The difference between the two policies is, as the Democrats suggest that those in actual need of temporary support to maintain our great primary industries would get that support, and the effect of giving it wou’d have no more effec* on the Kate of Exchange “ N.Z. on London” than the Milk Subsidy at present paid to the British farmer has on the Sterling Rate “London N.Z.’\ so Mr Coa'ies ’ tirade on Exchange is more camouflage, and shows a lamentable lack of knowledge upon the governing factors of ’Exchange. We are sorry Mr Coates must be. left guessing as to howi it is best to provide a minimum price, but there is no need to adopt* any of the meth ods uppermost in his mind, i.e.. costless credit, or note issues by the printing press. I am. etc.. “DEMOCRAT.” Auckland, October 3rd.