EXCHANGE RATES.

New Zealand Herald, Volume LXIX, Issue 21115, 24 February 1932, Page 12

EXCHANGE RATES.

Sir, —The Mayor of Wellington sets out the position of the cities in connection with any rise in the rate of exchange, lie maintains that were the rate advanced to 25 per cent., it. would be artificially fixed Is it not artificially fixed now at 10 per cent. ? He also states that the 25 per cent, late would be an intolerable hardship on the city ratepayers, that it would mean a 30 per cent, increase in rates. On the one hand the average city ratepavcr would certainly not pay more than £lO extra, but the average producer stands to lose £SO. There is a certain analogy between these city rates and this country's production. Ilave not values overseas "for all classes of produce receded '! Then naturally it follows that more goods must be sent to return the producer the wherewithal to pay his debts, that is, if payment is to be mado on the old scale. The value of each pound that these city councils can raise has also fallen in tho overseas market. Then it follows that city ratepayers must pay more, i.e., produce more in pounds. When one reads the stupendous figures that the three leading cities /have to meet in interest one realiscsMßit an orgy of expenditure must have' been indulged in during the last decade or so. Every whim of the city ratepayers has been satisfied and now that the" day of reckoning has arrived, Mr. Hislop declares that it would be an intolerable hardship to increase the rates. I sincerely trust that the farming community will not be misled by the findings of tho Mayor of Wellington. Sir Harold Beauchamp, and a leading financier, recently had much to say anent farmers' difficulties and high prices for land. On city values, they were as silent as the grave! E. A. Clayton.