What is the Alternative?

Manawatu Times, Volume LVI, Issue 7069, 31 January 1933, Page 7

What is the Alternative?

Mr Poison Challenges Exchange Opponents

MORE SPENDING POWER—

MORE MADE

Per Press Association

STRATFORD, Last Night. '' “The anti-exchange propaganda is so intense that many believe the Government has ruined the country,’' said Mr. W. J. l’olson in a statement on the exchange position. “Even, the farmer is being persuaded that higher costs for things like wire and Toofing iron are going to absorb all he gets out of the exchange. “The facts arc quite different. The figures show that every £1,000,000 of: export income moans £3,000,000 in the national income. The £4,000,000 to £3,000,000 added to our export income will givo the same result. More spending power will result in moro trade and an increased turnover. That has been Australia's experience. Her imports in spite of tariffs have been double ours and have been increasing rapidly. Living costs have steadily fallen and are now down 20 per cent. “Next we are told that wc will be taxed to pay London. It will not cost the country any more to pay London. Thero will be a year before tho readjustment reaches tho Treasury through the taxpayer, but wo collect one-lifth of the national income in taxation today. If wo still continue the same rate on the inflated income tho extra amount will be enough to pay tho exchange and leave something in hand. This is the economists’ opinion. The economists have gone as far as to say that raising tho rate will have no greater effect on New Zealand securities in Britain than letting things go as they are. Why should it? If it helps to rehabilitate New Zealand it cannot bo harmful.” Mr. Poison charged tho anti-ox-change propagandists with inconsistency in saying: “A short time ago whon farmers wanted the exchange free they insisted it should remain pegged. Now that tho farmers have it pegged they demand that it bo free.” When the Government refused to interfere with the banks it was blamed lor lotting them run the country. Now it has interfered it is attacked for not letting the banks continue to do so. “Nono of the propagandists offers an alternative unless it is the Stewart alternative of letting matters take their course. Has tho public realised what that would mean. Are the propagandists prepared to cut all wages another 25 per cent., cut out all expenditure, rcduco tho public services to a skeleton and let the primary industry on which the country depends go to the wall? How would tho importers get on then?”