Chambers of Commerce In Conference

Manawatu Times, Volume LIV, Issue 7298, 27 October 1933, Page 8

Chambers of Commerce In Conference

DIFFERENCE OF OPINION OVER EXCHANGE RATE

Per Press Association. WANGANUI, Oct. 20. The Associated Chambers of Commerce Conference opened this morning, when tho Mayor (Mr N. G. Armstrong) welcomed the delegates. Mr. J. Pearce Luke (Wellington) replied on behalf of the visitors. The president (Mr A. S. Burgess) said that the conference was meeting with distinctly encouraging trade prospects in evidence in Great Britain, and the trade improvement which had taken place clearly indicated that recovery was under way. This, to New Zealand, was very heartening, as it was only through the improvements overseas that they could expect any lifting of prices on the primary produce on which our prosperity depended. The position of Great Britain was particularly gratifying because the British Government had notably followed a sane and sound economic policy amid widespread radicalism. Britain’s policy stood out as a bulwark of proven soundness in a world of perplexity. The proposals that have been made with regard to the imposition of quotas on the meat and dairy produce of New Zealand were very disquiotemng, and if brought into effect would bo a disastrous thing for this country. There was no doubt that the conditions brought about by the action of the Government in increasing the rate of exchange, while it might not have been responsible for the origination of the proposals for quotas on our dairy produce, had been a contributing factor in the British farmers getting together for the purpose of guarding their own interests in view of the advantage gained by New Zealand producers in the British market through the depreciation of New Zealand currency. The Associated Chambers of Commerce had fought interference by the Government with the rate of exchange, because that action was an interference with economic laws, and was not in tho best interests of the whole of tho people. New Zealand wanted to secure a free and unrestricted market for her produce in Great Britain. This was an imperative necessity, and they should take every step possible in this direction by bringing exchange back to normal and reducing tariffs. More National Economy Wanted

Tho remits would deal with some vital considerations affecting tho whole of the peoplo. For any who looked to their deliberations to offer some easy way out of tho difficulties that confronted tho country, whether by lavish Government expenditure, by tinkering with the currency system, or by some other Aladdin’s lamp method, there would be small satisfaction. There was too great a tendency to regard the business of Government as being divorced from considerations that affected every other business activity. New Zealand was heading by design for an unbalanced Budget—what had been conveniently described as a ‘‘permissible deficit.” Their reserves were exhausted, the only reserve left being the taxable capacity of the people, and this had reached breaking point. The powers of wealth-production by tho people, from which source Government revenue was obtained, were hampered on many sides by restraints imposed by the Government on private enterprise. They had a mounting general and local government debt, and a gruelling tax and rate burden. It would be foolish to hoodwink themselves into believing that there was not a great deal still to be done in national economy.

As for present-day tendencies in Government, there was no avoiding the faett hat the State was assuming an increasingly greater measure of control iu those matters that bore on their getting a living, and tho freedom of the private individual was being progressively curtailed. It was a matter of vital concern that the wheels of industry and trade should be enabled to revolve at maximum velocity, and ways •to that end must be found. That was the only solution to our unemployment trouble. A Teport from a special committee on tho Reserve Bank proposal and tho desirability, or otherwise, of its establishment, would bo submitted. When the recommendation was first mado for the establishment of the Reserve Bank it was stressed very strongly that such a bank must be absolutely free from political control. Now what did they find? In the Bill before the House, ol' the ten directors, six, including tho governor and deputy-governor, were Government nominees. Surely no sane person would attempt to say that a Reserve Bank as now proposed would be freo from political influence, and if it were not considerably more harm might result than good. The chamber should, during the current year, bring all the ■pressure possible upon the Government to provide some relief from taxation in the very near future. The country

was staggering under a burden which was almost at breaking point. Exception Taken The executive’s report brought forth discussion, Mr W. Machin (Canterbury) taking strong exception (o the following clause:—“The action of the Government later in interfering with the rate of exchange invoked throughout the country an expression of disapproval seldom before exhibited. The action was doubly deplorable because the executive of the association, in an endeavour to assist the Government to deal with preseut-dav problems, had a short time before offered the services of a committee of the association to co-opcrate with the Government."

Mr Machin held that some members did not agree that the action of the Government in raising the rate of exchange was deplorable. Mr L. A. Paish, his Majesty’s Trade Commissioner, referring to the increased exchange in a subsequent address, said be would not express an opinion as to the desirability or otherwise of the Government's action, but said that New Zealanders should not criticise the Government out of the country when writing to friends in the Old Country, but should tell a story that the Government was justified in its action and do all they could to improve the relations between the two countries. Mr H. H. Sterling, General Manager of Railways, speaking at the conference, said be anticipated that the annual report of the Railways Board would be released at the end of the week. Passenger tickets issued in the past year had showed an increase of 347,000. Not only had the board’s experiment shown an improved financial position, but a better - service to the public had been provided.