STERLING FUNDS
Sir, —May I comment on the letter! of your correspondent Mr. J. Hislop. I gather that he has tried to prove that there is no reason for a further rise in the rate of exchange on London: but, as Mr. Downie Stewart pointed \ out, inflation always tends to be progressive. However, in view of the Prime Minister's promise to reduce the rate,, to parity with sterling it is that a further rise is contemplated. It i:i more probable that import control would be the method adopted to preserve our credit. A certain portion of the loss in exchanges due to fear and is, therefore, temporary. Nevertheless we only live oil our earnings, savings and, for a while, credit. It is not commousense to saj 1 we shall manufacture for ourselves, because we do not possess the raw materials for the pur-, chase of which sterling exchange - is necessary. The difference between household and national finance is only one of degree. If your time-payinent or mortgageßnterest is due your savings miist be adequate to meet them so that I cannot share the view of your correspondent that tbe fall of sterling exchange• assets is immaterial, E. L.' ReSd..iS-sji ■':?
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New Zealand Herald, Volume LXXV, Issue 23200, 21 November 1938, Page 14
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199STERLING FUNDS New Zealand Herald, Volume LXXV, Issue 23200, 21 November 1938, Page 14
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