CONTROL OF EXCHANGE.

New Zealand Herald, Volume LXVIII, Issue 21068, 30 December 1931, Page 12

CONTROL OF EXCHANGE.

Sir, —All Socialists must, sympathise with Mr. Thornes in his dilemma. He has joined in establishing a national Government- "to oppose tne Socialists," and almost before the election is over this anti-Socialist Government is compelled to control exchange and transport. It also introduces a Rent Restriction Act and moratorium for mortgages, and, Mr. Thornes might have added, there are 50,000 unemployed for whom private enterprise is unable to find a job. Mr. Thornes' political broom has entirely failed to stop the incoming tide and he now blames the Government for forcing this "Socialist" programme on us. However, we shall see with what success the "Freedom League" is able to persuade the citizens to abolish the schools, hospitals, tramways, etc. Why not have a private enterprise post office, managed on the same lines as the milk business—with 34 letter-carriers in one street ? J. S. Montgomeeie December 28. 1931. Sir.—The explanation of your correspondent "Logic" is that "the interest on overseas borrowing lias to be paid for by means of the ."ale of produce sold overseas." The interest is a Government debt; the money due for produce sold overseas belongs to the owners of that produce, and I fail to see by what moral right Government assumes control of that money. Neither do 1 see by what moral right an exporter is to be 'compelled to pay exchange to the banks on all he buys abroad. An exporting company here, with an agent in London, could sell there, say, £50,000 of produce, and buy there £50.000 of goods for import, at no expense except the agent's charges. How does it. benefit New Zealand's credit in any way to insist on his paying a bank a heavy exchange? "Logic" reminds Mr. Thornes "that a debtor has no liberties until he has cleared his obligations," but the debtor is the New Zealand Government, and so far as I can understand this matter, it- proposes to "clear its obligations" bv assuming control of the funds belonging to the private individual or company that exports their ©wn produce from New Zealand, and to whom payment for that produce rightly belongs! "Logic" argues as though "our exports" belonged to the Government. He says, "it is to ensure that there will be sufficient of the money received for our exports reserved to meet "our external liabilities." What does he mean by "our" ? If he exported £50.000 worth of his own produce, and received a letter from the. Government to the effect that it "found it necessary to reserve that £50.000 to meet its external liabilities," it would be brought, home to "Lo-ic" what this socialistic legislation leads to. His advice to Mr. Forbes as to "the encouragement of local secondary industries," is as doubtful logic as the rest of his letter. J. Thoknes. 231, Vamoll Road.