BUSINESS RESTRICTED

New Zealand Herald, Volume LXIX, Issue 21251, 3 August 1932, Page 12

BUSINESS RESTRICTED

EFFECT OF HIGH EXCHANGE STATE LOTTERY CONDEMNED That the Australian tariffs and high exchange rate are having a harmful effect on business in the Commonwealth was the view expressed by Mr. J. Marsden Caughcy on his return by tho Mariposa yesterday from a visit to Sydney. "In Sydney I noticed a marked deterioration in the quality of people's clothes," said Mr. Caughey. "Tho women, who were formerly noted, moro or less, for their smartness, do not carry that stamp to-day. I was given to understand that tlie reason for this is the very high tariff on imported clothing, and the high exchange rate, which, together are restricting the importation of smart garments. The people are now relying upon the local market for wearing apparel. "Tho general tone of business in New South .Wales cannot be described as good. In fact, at the moment, it is probably as bad, if r.ot, worse, than at any previous time, tho reason being the reaction to the high exchange rate. In other words, the boomerang is coming back. In my opinion, New South Wales and Australia generally, must recognise that 'two-way traffic' is imperative for their welfaro." Mr. Caughey expressed the view that the New South Wales State lottery-was a wrong and mistaken means of obtaining revenue. If £25,000 of the restricted spending power of the, people was invested weekly in the lottery, he said, legitimate trade must naturally suffer, with increase in unemployment. It would bo far better if the revenue was received through the ordinary trade channels.