“SITTING ON A VOLCANO”

Otago Daily Times, Issue 21986, 22 June 1933, Page 8

“SITTING ON A VOLCANO”

TO THE EDITOR. Sir, —In your issue of the 9th inst. is a letter from Mr Isaac Baker, a Christchurch business man, -which should receive some consideration. He has spent a year in the Home Country, and considers we are “ sitting on a volcano ” by trying the patience of Britain to the breaking point. He points out that Britain has £BOO,OOO invested in Argentina, and that country could supply all Britain’s needs. New Zealand has a population of about one million and a-half and owes the enormous debt of £281,942,800. Yet we act as if we were the creditors and had a right to dictate our terms. To relieve the British farmers and stabilise the butter market Britain suggested a restriction of exports on our part, but because Britain had generously agreed at Ottawa to unrestricted importations, our Dairy Board insisted on sending on as usual, without regard to the distressed, over-taxed British farmer. Moreover, New Zealand did not act on straight lines bv pegging up the exchange, and thus adding 15 per cent, to the cost of British imports, the consequence being that wp are closing the door on our best friend. Mr Baker states that the ship on which he came back to New Zealand had only 4000 tons of cargo, whilst there was capacity for- 12,500 tons, and this is happening all the time. Now we see the Southland Electric Power Board bringing a test case (with the tacit approval of the Government) 'in an effort to shuffle out of paying interest at the rate at which it borrowed, paying instead in the depreciated New Zealand currency. Mr Baker thinks Britain will get tired of it within five years, and then where will we be? —I am, etc., •Oamaru, June 20. G. Stringer.