HIGH EXCHANGE RATE

New Zealand Herald, Volume LXXI, Issue 21893, 31 August 1934, Page 12

HIGH EXCHANGE RATE

ASSISTANCE TO PRODUCERS STABILITY WELCOMED [by telegraph—OWN correspondent] WELLINGTON, Thursday "The exchange premium has been of great assistance to producers during the past season and fully justifies the strong action taken by the board in supporting the proposal," said Mr. David Jones, chairman, at the annual meeting of the New Zealand Meat Producers' Board to-day. "The board is strongly of opinion that a reversal of the present policy would be disastrous to our export industries and against the interests of the whole Dominion. It i*s gratifying to note that, in order to disi>el the existing uncertainty and to assist in achieving stability, the Reserve Bank of New Zealand recently announced that it will aim at retaining unchanged for a long period the rates it recently fixed, unless there should be a marked alteration in existing conditions. - "Our competitors, particularly South America and Australia, had the advantage of a high rate of exchange long before we had it, and wo should have been hopelessly beaten in the race if our exchange had not been increased, as no one can stand his competitors being given 15 or 20 yards in every hundred. It is very interesting to note that Sir James Grose, general manager of the National Bank and chairman of the Associated Banks in New Zealand, when the exchange was increased, said at the annual meeting of the bank in London recently:—

" 'With regard to the matters of which the chairman spoke—that is, exchange and general conditions —the depreciation of the New Zealand currency, by increasing the New Zealand-London exchange rate from 10, per cent to 25 nor cent, was forced upon the Government largely by the depreciation of the Australian currency, which gave Australian exports of primary products a substantial advantage.' "