THE EXCHANGE RATE

Otago Daily Times, Issue 23828, 7 June 1939, Page 17

THE EXCHANGE RATE

TO THE EDITOR Sir.—ln your issue of Wednesday last I asked Mr James Begg and others who are advocating a free exchange if it was a free exchange or a rise on the present rate they were advocating, also if they knew of one country in the whole world where a free exchange is operating. In your issue of June 1 Mr Begg makes a very feeble effort to answer the first question. He says, "What the farmers want is that the external and the internal value of the New Zealand pound should correspond." He then explains " that this can be done either by allowing complete freedom in the movements of goods and money—the natural way—or it can be done by the Government or the Reserve Bank raising the rate as internal depreciation takes place." Why does Mr Begg not tell the farmers straight out that it is Free trade and the abolition of all tariffs he wants? He must know that he might as well ask for the moon. Now let us take a look at the artificial way Mr Begg says it could be done: "The Government or the Reserve Bank raising the rate as internal depreciation takes place." That is really another case of a dog trying to catch its own tail. Our money is depreciated, and Mr Begg would catch up on it by depreciating it another 25 per cent. The sheep farmer has my sincere sympathy at the present time. I am opposed to the present Government, but I feel that the farmer would have a better chance of some redress if politics were dropped by the leaders of the farmers. Note Mr Begg's tirade against the- Government in his letter to the farmers' conference at Ranfurly. That sort of thing takes the farmer nowhere. —I am. etc.. Gold Standard. Dunedin, June 6.