BITTER POLITICS.

New Zealand Herald, Volume LXIX, Issue 21115, 24 February 1932, Page 9

BITTER POLITICS.

SOUTH AFRICAN UNION.

GOLD STANDARD DEBATE

CAPETOWN, Feb. 22.

A 12 days' debate on the motion of the Prime Minister, General Hertzog, to appoint a select committee on the gold standard, concluded with the adoption of the motion by 77 votes to 60. General Hertzog confined his reply to a bitter attack on General Smuts, Leader of the Opposition, whom he accused of deliberately inciting the people" to violence, and stampeding the farmers. General Smuts has issued a reply to the Prime Minister in which he characterises the Government's obstinacy as criminal, irresponsible and trifling. The Opposition, he says, washes its hands of the select committee.

The exchange rates quoted by the South African Reserve Bank on January 26, the latest available, were 27J; per cent, for buying telegraphic transfers on London and 26| per cent, for selling. This meant that £IOO sterling could be bought in South Africa for £73 15s, or that £IOO South African would buy £136 lis lOd sterling. The Government of South Africa announced on January 18 "that the bonus on exports would be raised to an average of 25 per cent. This bonus, designed to offset the advantages gained bv exporters in countries no longer on the gold standard, was granted in October, the amount being 10 per cent, on wool and other heavy exports and 15 per cent, on fruit and other perishables. The fall in the pound sterling counteracted the expected effect of this bonus, hence the decision to increase it. The extra money necessary will be some £5.000,000 annually. The original bonus was financed by a primage duty of 5 per cent, on all imports, but no announcement was made as to the means by which funds for the higher rate of bonus would be provided. General Kemp, the Minister of Agriculture, stated that the increased export subsidies, amounting to 25 per cent, tor wool and mohair and 20 per cent, for fruit, eggs and meat, would apply for a year and would not be subject to alteration in accordance with any fluctuations in sterling. The increased subsidy on wool would apply as from July 1 last, and on fruit as from August 6 last. Exporters who had shipped since those dates would be entitled to apply for the subsidy on the new basis.