Pegging the Exchange

Manawatu Times, Volume LV, Issue 7011, 22 November 1932, Page 6

Pegging the Exchange

REPRESENTATIVE MEETING’S PROTEST. Per Press Association. WELLINGTON, Nov. 21. A meeting, at which the Wellington Chamber and the Chambers of Commerce, the New Zealand Harbour Associations and the Wellington Harbour Board, the United Kingdom Manufacturers and the New Zealand Representatives’ Association, the New Zealand and Canadian Manufacturers’ Associations, the Master Drapers' As sociation, the New Zealand Federation of Master Drapers, Commercial Travellers and Warehousemen’s Association, Motor Trade Association were represented, this morning carried the same resolution as that Of the Importers Association protesting against any attempt to force the banks to increase the exchange rate. The motion was moved by Mr. Salmond, president of the Importers’ Federation, and the Mayor of Wellington, Mr. T. C. A. Kislop, seconded it.

Effects of High Hate

AUCKLAND RESOLUTION IMPORTERS’ VIEWS AUCKLAND, Last Night. A. meeting of Auckland importers and merchants to-day unanimously passed a resolution endorsing the Government’s policy of non-interference in exchange rates and asserting that a high rate without economic justification would be detrimental to the Dominion. Some discussion was hoard on the question whether a high rate has benefited Australia. Mr. J. B. Donald said that Australia to-day was living on overdrafts and a day of reckoning was bound to come There was too mu till paper money. The chairman, Mr. Gainor Jackson, said that Australia was reducing taxation in one way, but at tho same time she was arranging for a £2,500,000 bonus to the wheatgrowers, and there was also a bounty for butter. He prophesied that if the exchange rate was forced up here a reaction would come within twelve months. The farmers would find that payment of advances on produce by the banks would stop, and the money would not be available till the produce reached London. The exchange market would simply coilapse, and an enormous accumulation of funds in London would mean a great loss. Quito conceivably it would be six, twelve, or eighteen months after the goods were shipped before the farmers received payment.