EXCHANGE RATES.

New Zealand Herald, Volume LXIX, Issue 21110, 18 February 1932, Page 12

EXCHANGE RATES.

Sir, —Confusion is inevitable wlion we read ono day that Mr. Forbes says the bankers are deliberating on the exchange rate and that the matter lies entirely withthem, and follows thi s by announcing a commission (and what, a to advise on the matter. Is it a Government question or a bankers' ono? Mr. Forbes has succeeded in alarming everyone, and Messrs. Davidson and Copland have stirred the producers into a fury. The reasons for tho latter gentlemen's interference in New Zealand's affairs is not quite clear. The farmers and others demand freedom of exchange (this is so restricted now that tho banks refuse even reasonable travelling expenses to the individual). Now, if this demand is granted, with the feeling of insecurity now created, what happens? Capital flows out, of the country; the exchange rate rises; the farmers' returns increase, as do also his expenses, but, the vital factor that has not been stressed, the. lifeblood of the farming industry, capital, has left New Zealand, perhaps for ever. It- seems to me if only an explanation of the pooling policy were given and this wretched vacillation done away with, the country could march ahead to a hopeful future. l!ut it stands out, wc need a man. E.L.11.