RATE OF EXCHANGE.

Manawatu Standard, Volume LV, Issue 254, 24 September 1935, Page 6

RATE OF EXCHANGE.

HON. W. D. STEWART’S OPINION

AGAINST REDUCTION

DUNEDIN, Sept. 23. “It is well known that I strongly opposed the raising of the exchange rate and left the Ministry because of this issue,” said Hon. W. Downie Stewart in an address here to-night. “Some political candidates and groups indicate as one of their main planks the reduction of the exchange to its old rate; but, although I still think the raising of the exchange was a grave mistake for many reasons, I recognise that once it was raised it became a fait accompli, and far-reaching consequences flowed from that. “To attempt to reverse the process now, either suddenly -or by degrees, without some marked change i n economic conditions, would cause the same trouble and disturbance as was caused when the rate went up. It is clear that if the rate was suddenly reduced grave hardship would be caused to all tlio.se traders who have laid in stocks at the higher rate. As one Australian aptly said when the Australian rate was fixed, ‘We have got up a tree and we don’t know how to get down.’ So that while I think the action of the Government in raising the rate was a mistake and that in reality it has had a deflationary effect, yet I think to attempt to cancel it liow would be an error.”