EXCHANGE CONTROL

New Zealand Herald, Volume LXXVI, Issue 23319, 12 April 1939, Page 7

EXCHANGE CONTROL

DOMINION'S MEASURES .BROADCAST IN ENGLAND EARLIER TALK MODIFIED [prom our owx correspondent] LONDON, March 24 Over two months ago, Professor N. F. Hall, director of the National Institute of Economic anrl Social Research, at the invitation of the broadcast comments upon Now Zealand's exchange control measures. His remarks were based on press messages received in London from the Dominion. They raised so much indignant comment that Mr. Malcolm Mac Donald, then Dominions Secretary, took the matter up with the 8.8.C. The sequel this week was a broadcast news talk by Professor J. B. Condliffe, who made "a brief statement" at the request of the 8.8.C. and the New Zealand authorities. "Early last December,'.' he said, "the New Zealand Government took control of the Dominion's foreign exchange assets, and announced that imports would be controlled by a licensing system. This caused some apprehension among British exporters and also, curiously enough, among holders of New Zealand securities. Such apprehension, I am afraid, has been increased by tendentious press messages from political opponents of the Government in New Zealand. More Complete Information "A previous statement in this news was based, in good faith, upon such messages, which later and fuller information shows to have been misleading. More complete information is now available, and I have been asked by the 8.8.C. and the New Zealand authorities to make a brief statement 011 this question. "In periods of world depression New Zealand, like all other primary-pro- j dueing countries, gets caught with large import orders usually after the prices j of her exports have fallen. The inevitable result is that her reserves of foreign exchange are run down. In the past such, a strain oil the balance of payments was met by the New Zealand hanks rationing credit, and so producing deflation, depression and unemployment in the Dominion. This happened in 1921 and again in (1931. Once more heavy imports have strained the balance of payments, but this time the position is due, not only to a fall in export receipts, but also to a monetary policy which has produced full employment at high wages in New Zealand." Professor Condliffe pointed out that the Labour Government had refused in the present emergency to restrict credit in the Dominion and had taken the shock on its exchange reserves, but it must take reasonable precautions to see that it was not caught short of foreign exchange. That was why it had taken control of exchange assets and was cutting down imports. It may not need to eui them on the average as much as normal banking action did in 1921 and 1931, although particular articles may be cut more. In 1931 imports fell by 42 per cent and remained at that level for a year or two. Jealous ol Honour "One main reason for the Government's action had been its firm intention to meet all debt obligations fully and promptly. No New Zealand loan had ever been defaulted. The present Government was as jealous of the honour and credit of New Zealand as any of its predecessors. There would- be no default. Indeed, it was just to forestall any. such possibility that the so-called exchange control was introduced. "Moreover, there was every intention of importing from Great Britain to the maximum amount made possible by export receipts. There was nothing New Zealand wanted more than to sell her butter, cheese, meat and wool in Britain. But meat imports had already been cut down this year. If New Zealand could not count, as in the past, upon an expanding market for her agricultural exports, she must turn to the development of her local manufactures. Trade had to be two-way traffic."

THE CITY MARKETS 9 SHORTAGE OF VEGETABLES HIGH PRICES RESULT Dessert apples had a fair sale at the City Markets yesterday, and some lines of pears sold well. Tomatoes were easier, but grapes were in good demand, lemons and passion fruit also selling well. There was a shortage of vegetables, resulting in high prices for this time of the year, cabbage. cauliflower, peas and beans being affected. Lettuce was in good supply, good prices being realised for quality lines, while there were also heavy quantities of celery. Carrots maintained recent rates, while pumpkins and kumaras realised good rates. Prices were:— FRUIT Apples, Delicious, 3s to 1s Rd n case; Ballarat, 4s to 5s (>d; Granny Smith. 4s to oS; Wincsap, 3s to Is Od; pears, L.8.J., 10s to I3s (Id; Keiffers, 3s to 4s Od; P. Barry, 4s; Winter Coles, 8s to 10s; tomatoes, outdoor, extra choice, (is to 8s a case; others, 4s to 5s Od; Hutt, (is to Os (id; tree tomatoes, yellow, 3s to ss; oranges, Jamaican, 20s (id to 2Ss (id according to count; grapefruit, JamUican, ISs to 20s a case; lemons, choice, cured, 8s to His; bananas, ripe, 20s; grapes. To Kanwhata, 8s to 12s; hothouse, Colman, extra choice, Is 8d to Is lid per lb.; others, lid to Is Od; cape gooseberries, 3d to sd; passion fruit, 5s to Os a case; figs, 2s Od to 3s Od; persimmons, 3s to 4s Od; Quinces, 7s to 8s (id. FIELD PRODUCE Beet, Od to Is Od a dozen; - celery, cooking, Is to Is Od a bundle; dessert, 2s to 3s; carrots, Od to 1s Od a dozen, or 4s to (is Od a bag; cauliflower, 12s to 17s a bag; cabbage, 8s to 17s a sack; cucumbers, 2s to Is Od a dozen; French beans, 2s Od to 5s a bag; stringless beans, 8s to 17s; grecu peas, 10s to 17s; kumaras, 8s Od to lis (id; Tauranga, 5s to 7s; leeks, 3d to (id a bundle; lettuce, 5s to 10s a case; fharrows, 3s to 4s Od a sack; melons, water, 4d to Is Od each: citrons. Is to 7s a sack; onions, choice, No. 1, Os (id to 10s (id a bag; potatoes, southern, Its Od to 12s a cvvt.; Ohakune. (is 3d to 7s Od a bag: pumpkins, choice Crown, 12s (id to 10s (id a cwt.; medium, 7s to OS a sack; parsnips, is 3d to 2s a dozen; radish, (id to Is Od; rhubarb, 2s to 3s Od; spinach. Is to Is Od; spring onions, is to Is od a bundle; swedes, 2s to is a bag; turnips, (id to 9d a dozen. POULTRY Cockerels, heavy breeds, prime, 2s Od to 4s Od each; not prime, Is up; light, prime. Is f'd to 3s; not prime. 1s Od up; fat roosters, heavy, prime, Is Od to 2s Od; light, ts Od to 2s; fat hens, heavy, 2s to 3s; light. Is Od to 2s 3d; laying hens, heavy, 2s Od to 3s Od; light, 2s; pullets, heavy, best, 7s; smaller. 5s up; light, best. ss; smaller. Is (id; drakes, young, prime, 2s to 3s : smaller. Is (id to 2s; old, 2s to 3s; ducks, young, 3s to 4s; old, 2s to 3s; geese, 3s Od to (is (id; turkey hens, 4s to Os; gobblers. 8s l ° 11S " BUTTER AND .EGGS Eggs, hen, Ist grade, 2s Olid a dozen; B grade, Is ll 1 id; C grade. Is 4M,d; duck, Ist grade, 2s 2 l / a d; B grade, 2s O'/.d; C grade, is 5 5 /2 d. Butter, farm butter, 1« 3d to It 7d per lb.