EXCHANGE POLICY

New Zealand Herald, Volume LXX, Issue 21546, 18 July 1933, Page 10

EXCHANGE POLICY

REPLY TO FARMERS' UNION CHALLENGE BY IMPORTERS [BY TELECHArn —ritESS association] WELLINGTON, Monday In a statement to-day Mr. Edwin Salmond, president of the New Zealand Importers' Federation, resumes the exchange rate controversy. He says: "The Farmers' Union is apparently forcing itself to believe that our tariff is accountable for Britain's threatened action to ration our exports. There is absolutely no evidence of this. It is quite apparent from the London cables that it is the English farming community which is putting pressure on the British Government. It is absurd to argue that tbo British farmers are concerned over our tariff, which, after all, does not concern them, and is entirely a matter for the British manufacturer. "On the other hand, English farmers bitterly resent New Zealand's action in inflating the exchange, which enables our dairy farmers to dump our butter and cheese on tho United Kingdom market under a protection of 25 per cent." Mr. Salmond proceeds to deal with the Farmers' Union statement, which lie says endeavours to prove that the 25 per cent is not an artificial rate. "If the farmers are honest in the belief that 25 per cent is now the natural rate we challenge them," said Mr. Salmond, "to request the Government to release control, when, according to tiieir own theory, exchange will automatically remain at the present figure. ]f they are wrong, the rate will readjust itself to a proper level that will no longer unfairly penalise the community. and the fallacy of the farmers' propnganda will be fully revealed."