LOWER EXCHANGE

New Zealand Herald, Volume LXXIII, Issue 22463, 6 July 1936, Page 11

LOWER EXCHANGE

MR. SAVAGE'S RESOLVE PROVISION OF SUBSTITUTE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Saturday Another positive declaration that at the proper time the existing high exchange rate would be dealt with was made to-day by the Prime Minister. Mr. Savage. He pointed out that the Government's plans were to provide a stable foundation for the standard of living of New Zcalanders and that there could be no stable foundation other than that based on what tho country produced. "The exchange rate." lie continued, "is not to be dealt with until the Government is in a position to provide tho alternative. That alternative is guaranteed prices for all forms of our exported produce. This is not a thing which can bo done overnight. So far we have only dealt with the dairy exporters, but it will be quite clear to anyone who gives consideration to it that the rate of exchange cannot be removed until a substantial substitute has been provided. " The substitute we have is the guaranteed price system which needs a good dealt of machinery. It cannot be brought into existence overnight, but the rate of exchange will have to coino off. It is only a question of providing tho alternative, and the time and tho method of removing it."