WHO FOOTS THE BILL?

New Zealand Herald, Volume LXX, Issue 21411, 8 February 1933, Page 13

WHO FOOTS THE BILL?

Sir, —Mr. Coates in criticising Mr. Dovvnie Stewart's speech sa'd that Mr. Stewart had used language that was picturesque. Mr. Coates' language was not even that. He is reported to have said, " It was possible it would not cost the Government. £1.000,000 or even £50,000. It was quite on the cards that they would get through without any loss at all." This sounds like the "bally hoo" of the threecard artist. £1,000.000, £50,000 or nothing. "Yer pays yer money and yer tikes yer choice." What an optimist! It is the people of New Zealand who are the Government when it comes to indemnifying the banks, and it will have to be done either by taxation or imports. You cannot pay twenty-five shillings for every £1 worth of butter exported unless someone foots the bill, and one thing is certain, the Government of New Zealand, that is, the people, have got to pay. Neither Mr. Forbes nor Mr. Coates has got, a magic wand to get it out of the air. We can't trust the cards. G.F.K.

Sir,—As a producer 1 now receive for every £IOO of my produce sold in England £125 (less the increase in shipping rates, etc.). or a stun of approximately £l2O when various extra increases an l deducted. Very nice, until I take my £l2O to purchase goods necessary to carry on the home and farm. Most of these goods are imported, or manufactured from imported materials, and what do I find ? These imported goods are handled, firstly, by a wholesale importer who has now to pay £125 for every £IOO worth of goods, he has to find interest on the extra £25 of capital employed, so tho goods aro loaded with another £1 5s (at least), pins the increased shipping charges, etc.—or, in rough figures, the £IOO (at par) worth of goods now costs at least £127 landed in New Zealand. Tho retail merchant now purchases the £IOO (at par) worth of goods, which cost him £l27—he, in turn, has to find interest on an extra £27, and the goods am loaded with another £2 to £3. My cost of living and running the farm has increased at least 30 per cent, while my income has increased at most 20 per cent. As regards tho nop-export-producing portion of the population, their income does not increase at all. My figures are, of necessity, only approximate; however, I think they illustrate the reason for my inquiry: "Who does profit by the high exchange rate ?" Puzzled Faemee.