Exchange Alteration Surveyed

Northern Advocate, 23 August 1948, Page 4

Exchange Alteration Surveyed

The Minister of Finance, Mr Nash, in a broadcast address last night, made a very enlightening survey of the reasons why the Government decided to restore New Zealand currency to parity with sterling. He defended the secrecy regarding its intentions observed by the Government, stressing that this was imperative in order that no person should profit, for if any inkling of the proposed change, which was one of national importance, had been given, it would have been possible for speculators to make large sums of money by manipulation of funds they possessed. Again Mr Nash gave an assurance that even though there might be temporary embarrassment to some people, the exchange alteration would be of long-term benefit to everybody. Mr Nash argued that there was no time more suitable for the action the Government had taken, for whereas

the rate of exchange was raised 25 per cent in 1933 in order to save farmers from bankruptcy owing to the low prices obtainable overseas for their products, no need for such protection existed today, when there were no bankrupt farmers.

The change was made to bring down the cost of living, for removal of the 25 per cent addition to the price of imported goods would in due time reduce prices of practically all commodities.

These statements, which are only a few of those made by Mr Nash, will quicken interest in the Budget debate, to be opened tomorrow night by the Leader of the Opposition. Mr Holland will probably be followed by the Minister of Industries and Commerce (Mr Nordmeyer), who is expected to explain the Government’s policy in regard to the means by which the exchange alteration may be put into effect.