HIGH EXCHANGE

Hokitika Guardian, 21 November 1932, Page 5

HIGH EXCHANGE

AND ITS EFFECTS AUSTRALIAN ADVICE RECEIVED, « (Per Press Association — Copyright.) AUCKLAND, November 19. Mr Endean, M.P., who has received an affirmative reply to an inquiry in -i, Australia, as to whether high exchange 'bad proved beneficilal to the Commonwealth early this week, sent another cable to a reliable authority in /Sydney, asking whether it would be advisable to fix a high rate of exchange similar to that of Australia. The reply received by Mr Endean states that the effect of high exchange i's to stimulate primary exports temporarily, to increase internal costs, and' also the burden of interest, remittances. It is logical that an increase in taxation will follow. Mr Endean Iras telegraphed this reply to Mr Forbes with the comment: “This Hvould seem to be the sounder .view. Kindly convey this information to- Sir Henry Buckleton.” . v NEW ZEALAND MANUFACTURERS AGAINST ALTERATION IN RATE. WELLINGTON, November 20. Tire view was expressed at a meeting of the New Zealand Manufacturers’ Federation that the manufacturers had not altered their opinion on the exchange question. While admitting that a higher exchange would provide an etxra duty in favour of looal manufacturers, the feeling, was that the general result to New Zealand would certainly be detrimental. ' . It wa® .pointed out that the extra exchange had to paid by New Zealanders in New Zealand, and it would not increase the circulation of money, .as some of the advocates of high exchange mhde out. The manufactures were definitely against an artificial rate of exchange, and would do all they could to prevent it being forced on New Zealand. DUNEDIN IMPORTERS OBJECT. DUNEDIN, November 19. , The Importers’ land Shippers’ Association at a special meeting here, decided to request its delegate on the New Zealand Importers’ Federation to protest emphatically against the exchange rate being artificially interfered with.