HIGH EXCHANGE

New Zealand Herald, Volume LXX, Issue 21399, 25 January 1933, Page 12

HIGH EXCHANGE

MINISTRY'S SUBTLE ACT

CONSTITUTION VIOLATED VIEWS OF CORRESPONDENTS " Nova Zcalandia" writes .direct and immediate effect of the alteration in the rate of exchange will be to increase the cost of all imported 'commodities by a sum of at least three shillings in the pound—an increase which, it is intended, will go to the exporter of our primary products. In other words, Uie effect of the act of the Government is to levy a tax of that amount upon all imports. Now this has been done in an extremely artful and subtle way. The ordinary method of introducing a bill to effectuate the scheme was not adopted. Hence the representatives of the people were not afforded the opportunity of debating the question. The plan was pursued silently and surreptitiously. At midnight, we are told, the news was conveyed to the people of the increase in the rate of exchange.--The means employed appear to have been .such as to prevent all precedent discussion. So determined were the Ministers, that the method devised by them of avoiding the introduction of a bilJ, abrogated the necessity of obtaining the consent of the Governor-General, and, no doubt, intentionally so. Now the assent of His Excellency to measures passed by the Legislature is required by the Constitution Act. Essentially is this so in the case of bills appropriating money out of revenue. In such a is an imperative condition that the Governor-General on His Majesty's behalf should first recommend the House of Representatives to make provision for the specific public service toward which the money is to be appropriated. This valuable safeguard has been nullified- by the action of the Ministry. Another consideration serves to show how resolute Ministers were to disregard all constitutional checks in their headlong career. The Petition of Rights is in force in the Dominion. Tfye Ministers desired to introduce a sales tax, and, presumably, as the sequel shows, without the concurrence of Parliament. The Petition of Rights interposed a bar. That memorable and historic document contained the provision " That no man hereafter be compelled to make or yield any gift, loan, benevolence, tax or such like charge without common consent by Act of Parliament." It cannot be pretended that Ministers had " common consent by Act of Parliament." But thp community are compelled to yield the tax. The safeguard for which British people fought their monarchs—Plantagenet, Tudor and Stuart alike—has been set at nought by the Ministers.

The question whether the scheme is judicious or otherwise is completely overshadowed by the setting at defiance of a principle of outstanding constitutional importance. Are the people of New Zealand prepared to submit to this ? Will they stand by in servile submission and allow a measure that has been on the Statute Book for generations, and that was designed to ensure their freedom, to be disregarded ? Upon this question our ancestors fought single monarchical despots. In these days tyranny is manyheaded, and takes the guise of the trusted advisers of the Crown. It is the right of / the people to make representations to' the representative of the Sovereign, to set forth their grievances to him and to ask for a. remedy. A mere storm of protest in the different centres is not enough. It ought to be represented to the Governor-General that Ministers have violated a fundamental provision of constitution affecting the liberty of the people, and he should be graciously asked to take such steps as will ensure the maintenance of cherished constitutional safeguards.

HELPING THE PRODUCER GREATER PURCHASING POWER Mr. Joseph Henry writes:—The Government's action is at least an attempt, even if it should prove ultimately ineffective, to better the prevailing conditions, and has removed the fear that they would permit us to drift on the tocks without any act to avert imminent shipwreck except ineffectual talk. It is recognised the main business of our Dominion is our primary production, which is the foundation on which all onr other activities are based. Let this-foun-dation be so undermined that it becomes not only insecure, but actually demolished, and what becomes of the superstructures raised thereon? There is one thing certain, the increased local value of primary products, which the increase in the exchange rate will create will assist the primary producer to keep going. It will enable him to employ more labour; it will assist him in keeping back the deterioration of his land; it will give him greater purchasing power, which will be expended with the importers and merchants in the towns. He will have -to pay more for his imported requirements, but he will have more wherewith to pay. And if the purchase of imported necessities is found uneconojnical the bulk of such necessities can be produced in our own country, to the advantago of the people in general. It is undoubted the increasing of the exchange will have various reactions, but I trust it will help to keep the ship afloat until we reach the calmer sea that is hoped for; but more, and much more, is necessary to save our main industry, from collapse. •

PRIZE FOR EXPORTERS ONLY THE POTATO GROWERS' CASE ft v". "Tatters" writes:—Now that the exporting dairy and sheep farmers can again bring- out their expensive sedan ears, what is going to be done for the rest of us ? Potato growers, onion growers, poultry farmers, seed growers, market gardeners, etc., are all farmers who work as hard and are just as hard hit as the export section of agriculturists,- aud are obviously entitled to equal consideration. Surely wo deserve something better than to be taxed 5s in the pound of our already sweated incomes for the benefit of our cow and wool-king brothers, who have been given the only prize out of the conjuror's hat. Unless Mr. Coates and his merry troupe of "professors" can conjure up a few more gifts for the rest of us, J fear many will be only moderately satisfied. The Englishman can now buy £124 worth of our produce for £IOO sterling.

THE FARMERS' INCOME

A FEW EXTRA POUNDS

Mr. Charles Opio writes:—The thousands of pounds extra to'be got 'through the exchange rate is a mere bagatelle in comparison to what the-Dominion would lose, without an urgent increase in the primary producers' income. It is a fact that the, farming industry is now ripe for extinction. Had the exchange rate not been raised and prices for primary products to the producer remained as they were in December, within six months a very real national catastrophe would have taken place. The increased rate of exchange will not raise the farmers' income

much, but it will be just the difference • between bankruptcy and slow progress. | Only farmers kOow 'the real worth, of-those [ few extra* pounds now coming in^