EXCHANGE ISSUE

Northern Advocate, 2 May 1933, Page 3

EXCHANGE ISSUE

REPLY TO lIP. COATES

IMPORTERS’ STANDPOINT

“JUGGLING WITH FINANCE.”

(Per Press Association.— Copyright.)

WELLINGTON, This Day

Replying to the recent statement by the Minister of Finance, the Rt. Hon. ,1. G. 'Coates, on the exchange issue, Mr Edwin Salmond, president of the Importers' Federation, states that the Monetary and Financial Committee of the Ottawa Conference stressed the importance of stable exchange rates over as wide an area as possible, and the value of countries within the Empire maintaining .stability between their exchange rates. He said that the Minister had avoided all reference to the patent facts that the country's juggling with finance had been a factor in the depression now being experienced in the overseas dairy market, where the Government’s action had done enormous damage to the Dominion's good will. Mr Coates accused the Federation of making a deliberate mis-statement when it contended that unemployment figures had increased, but the April figures just published showed that there had been an increase.

When giving its estimates of £8,000,000 as the prospective loss of the Government on the exchange rate, Mr Salmond added that the federation had taken into consideration loss by acquiring excess funds under the Banks Indemnity Act, loss of Customs revenue through restricted imports, loss to local bodies on debt services abroad, loss to individual firms and loss to the community through,increased cost. Mr Coates'had said that the* funds taken over by the Government far not exceeded the amount required to meet the Government's. ordinary interest requirements in London, but in his review of Hie budgetary position he had included £470,000 as unforseen expenditure, and had included £470,000 for the purchase of exchange in excess of requirements for the year ended March 31. It was obvious that Mr Coates flatly contradicted himself.