HIGH EXCHANGE

New Zealand Herald, Volume LXXII, Issue 22211, 11 September 1935, Page 15

HIGH EXCHANGE

EFFECTS ON DOMINION TWO OPPOSING VIEWS CRITICISM AND SUPPORT [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON. Tuesday A strong appeal to the Government to lower the exchange rate was made by Mr. C. A. Wilkinson (Independent— Egmont) during the Address-in-Reply debate in the House of Representatives to-day. "The rate to-day is crippling business and making imported goods far too high for the people's pockets," Mr. Wilkinson said. "Figures given in English publications show that we only buy a quarter of what we sell to Britain, and, further than that, some English goods are going right off the market because of competition, particularly from Australia. I refer especially to wire. The cost of English wire for the use of farmers is absolutely prohibitive and the cost is made up largely by exchange "The British people could compete with Australia if there was no exchange," added Mr. Wilkinson. "Tho position is bad because we cannot sell Australia any of our goods and her trade is developing by leaps and bounds. Our trade with Britain is going back," Tho opposite view was taken later in the debate by Mr. J. Hargest (Government —Invercargill), who said the high exchange rate had made moro money available not only for the farmers, but also for the people of tho Dominion as a whole. Manufacturing concerns had been given a breathing spaco, and in addition new industries had been encouraged. The manufacture of radio sets was a case in point. Now Zealand was now two years ahead of Australia in that particular sphere. "The beneficial effect of the high exchange may be seen in the general community," continued Mr. Hargest. "There are about 800,000 investors in the Post Office Savings Bank, representing moro than half the population of New Zealand, so that it is obviously a poor man's bank. During the three jears before the raising of tho exchange withdrawals from the Savings Bank exceeded deposits by £12,000,000. In March and April, 1933, tho withdrawals slowed down, and since then there has been a steady trend in tho opposite direction, showing that more money has been made available to the people. In tho last 28 months deposits have exceeded withdrawals by £5,800,000, or an average of £200,000 per month. This improvement in the state of the people's savings may be attributed to the high exchange rate."

MILEAGE OF TRAINS OVER 10,000,000 IN YEAR HEAVY COAL CONSUMPTION [by TELEGRAPH —SPECIAL RKPOIITF.It] WELLINGTON, Tuesday Railway trains in New Zealand travelled a total distance of 10,626,400 miles during tho 12 months ended March 31, according to the annual statement of tho Railways Board. This represents an increase of 463,926 miles upon the distance travelled in the year 1933-34. Passenger-train miles totalled 4,(353,708 and goods 5,972,692, compared with 4,550,559 and 5,612,915 miles respectively in tho previous year. On March 31 there were 593 locomotives—s77 steam, 11 electric, and five electric-battery—in servico in the Dominion. During the year 23 engines were scrapped, making a total of 187 obsolete locomotives scrapped since 1926. Six now K-class locomotives were completed, tho total of this type in servico being 18. Waikato spark-arrosters were fitted to 103 engines. The average consumption of coal a week during the year was 8032 tons, an increase of 621 tons, duo partly to the more extensive use of Waikato coal. Only New Zealand coal had been purchased during the past three years. In the 12 months ended March 31 the board bought 181,409 tons of hard coal and 240,925 tons of soft coal. The number of carriages in service nt tho end of the financial year was 1497, including 35 built during tho year. Ten carriages had been fitted with 5.K.F. bearings, making a total of 69 cars that had been so equipped. The fitting of these axle-boxes was designed to eliminate delays through the development of "hot-boxes" while the cars were in service. It was significant that no delays had occurred from this defect in any of the carriages fitted with these bearings. The number of waggons in service was 27,310. At March 31 the total number of level crossings fitted with automatic devices was 123. In addition, there were a number of manually-controlled bells. Apart from the proposed expenditure by the Government of. £300,000 over three years in the direction of eliminating crossings, the board would make financial provision for the erection of extra warning devices. These would be placed where the board considered the traffic justified such a course and the local authorities were agreeablo to assist.