RATES OF EXCHANGE

Hawera Star, Volume LI, 20 February 1932, Page 6

RATES OF EXCHANGE

PEGGING SYSTEM OPPOSED CHAMBER OF COMMERCE VIEW INTERFERENCE NOT WANTED. (By Telegrapn—Press Association'). WELLINGTON, Feb. 19. Remarking that some misconceptions appeared to have been circulated from some quarter, Mr <C. J. B. Norwood, president of the Wellington Chamber of Commerce, to-day stated that the chambers of commerce had always been consistent in their objections to State or local body interference with private enterprse and ordinary trading. The extreme step of what might be termed the commandeering of the whole country’s exnoi't production for protecting the Dominion’s credit to the extent of about £14,000,000 was one that has appeared somewhat drastic, and while fully supporting the contention that the Dominion’s credit must be kept unblemished, nevertheless this did not dispose of the contention that other steps might hdve been followed to achieve the same end.

Definite expressions of opinion had been made by representatives of the banks that the position was such as not to warrant an increase above the present rate of 10 per cent. Contemporaneously with the representations that have been made by Chambers of Commerce against any artificial fixing of exchange* rates, and again closing the market for exchanges, there had been a controversy from other sources in advocacy of a pegged high exchange rate.

Many advocates of this latter confused as being synonymous terms the question of (a) free exchange and (b) that of a rate of say 25 per cent, or 30 per cent. Persistent propaganda in this direction had no connection with tiie steps taken by Chambers of Commerce to endeavour to have cleared up matters arsing out of a credits pool and the fixing of a non-competitive rate of exchange, and Chambers of Commerce still stood for the principle of non-interference Iby ithe Government. They were definitely against any artificial pegging of exchange rates. PROTEST AT NELSON. DETRIMENTAL TO WELFARE. NELSON. Feb. 19. The Nelson City Council has passed a resolution expressing the opinion that any artificial fixing by the Government of exchange values is detrimental to the interests of both the council and the Government, and is also. inimical to the welfare of the Dominion as a whole.