HIGH EXCHANGE

New Zealand Herald, Volume LXX, Issue 21552, 25 July 1933, Page 13

HIGH EXCHANGE

Sir, —[ agree with Mr. J. D. Gray when he says that the producers must be helped and protected and maintained in the work of production before any other business or trado, but I challenge his statement that "the high exchange has tremendously helped the producers of New Zealand." Our high exchange policy has played "ducks and drakes" with our valuablo British markets and therefore cannot help our producers. Sir. Forbes' statement does not tally with the general opinion in England, which is that New Zealand does not play the game in regard to tho Ottawa agreements. I refer Mr. Gray to tho critical remarks made in both Housos of Parliament to that effect, which undoubtedly referred to New Zealand. My candid opinion is that the only way to benefit our own producers and avoid quotas is for New Zealand to get in promptly and offer Britain free trado for five years as consideration for freo markets for our produco in Britain. Lot us show Britain that we are anxious to pull our weight in the boat, and not keep on asking for favours which we well know we have no right to expect. Pro Patrxa.

Sir, —The idea that farmers are benefiting from the high exchange has run too long and it is high time to make it clear that the dairy exporting producers do not have that great favour conferred on them at all. Our butter, as tho Dairy Board reports, was selling in London for the last, seven months at botween 8.75 d and 9.25 d a lb., say 9d a lb. in English sterling. Add 25 per cent exchange, as widely supposed bj' idle onlookers and by your correspondent the "Small Farmer," and the price would bo 11.22 d a lb. in New Zealand currency. As it was always tacitly agreed the difference between pound of butter and pound of butterfat is forfeited to cover expenses, and the 11.22 d would appear to be the legitimate pay-out to farmers here for pound of butter-fat (not butter). For the last seven months the pay-out for butter-fat, made by factories, was 8.03 d for superfine and 6.96 d for first grade, say 7.49 d a pound of butter-fat. Where is tho beneficial exchange premium, which should not bo less than 2.22 dP Instead, tho farmers have, roughly, 3.73 d penalty and loss as against the London quotations shown. Not only 2.22 d, representing the exchange premium, is not paid at all, but a further 1.51 d d isappears or is withheld. Another Small Farmer.