FARMERS AND EXCHANGE

New Zealand Herald, Volume LXXII, Issue 22161, 15 July 1935, Page 12

FARMERS AND EXCHANGE

Sir,—Your iarmer correspondent takes a rather superficial new of effects of the 2o per cent exchange rate. Prior to January. 1933 r the ex change premium was 10 per cent. Was the benefit of the increase to 2u per cent commensurate with the evil effects® Many importers were ruined; specu lators made profits at the country's ex" pen.se. manufacturing rosts, dependent I on foreign raw materials, rose; export prices dropped; freights rose.' Above all New Zealand* immense oversea* I interest bill wits" increased. Australian manufacturers gained markets here at i the cost of Britain, on whom wo relr for our market. The gain, on paper to to the farmer, must be under 15 cent, the most likely figure under Sta per cent. If the farmer pavs the over seas debt in then he is senHtn» 20 per cent rSWre butter, etc., to ! don for that same debt than he at par exchange. E. L. Reed

Sir,—ft is to he regretted that Mr S. Austin Carr should have so far faj* gotten good taste as to endeavour to take advantage ,of his position a* president of r.he Auckland Agricultural and Pastoral Association to ex" pound his political views rjpo n occasion of the opening of the Winter Show. Had Mr. Carr made these remaiks upon a political platform, he would no doubt have found great difficulty in giving any reasons for hk statement that but for the high' rate of exchange the price of butter-fat would have been one shilling per pound. member of the Government has dote more for the farming community than the present Minister of Finance, and had it not been for his timely introduction of emergency legislation, fixing the rate of exchange, the farming community would have been absolutely ruined. Dairy "Faehee. "