THE WOOLGROWER’S FRIENDS

Otago Daily Times, Issue 23830, 9 June 1939, Page 15

THE WOOLGROWER’S FRIENDS

I'O THE EDITOR Sir, —There is only one point in "Overland’s” letter that I wish to reply to. He states that Canterbury lamb letches a higher price than Otago lamb, and his story reads well, and might. be convincing if his statement Was correct. Canterbury lamb does not fetch. a higher price than Otago lamb. The latter is carried in the same ships, and reaches London as promptly and in as good condition as that shipped''from Timaru or Lyttelton. I am sorry that “Gold Standard ts not satisfied with my answer to his question. Farmers are advocating a free exchange rate; but knowing that complete ■ freedom is unattainable under present conditions, they would be content with such freedom as is quite possible attainable. The question, Do we know of one country in the whole world where a free exchange is operating? can be answered by saying that complete and absolute freedom may not exist anywhere; but relative freedom does exist in all the members of the British Empire, except New Zealand. In all these countries citizens can send money freely to each other. New Zealand is the notable exception, “ Gold Standard ’ is mistaken when he accuses me of wishing to further depreciate the cursrency. This is the very opposite of what 1 wish. Depreciation has already taken place -in New Zealand, and merely allowing money to exchange freely with the money of other countries will not, and cannot, further depreciate it. Should the exchange rate move to, say, 140, that would merely show how far internal depreciation had advanced. The sheepfarmers will no doubt appreciate “Gold Standard’s” sympathy and would be pleased to know what redress for their position he can suggest. I hope he has not in mind a “ guaranteed price ” for meat and wool, or some other form of subsidy because these methods inevitably involve further depreciation Freetrade is an ideal, and the nearest wo can get to it the better the farmers will be pleased. It is impossible at present, but that Is no reason for continuallv increasing the weight and strength of the shackles with which we are burdened.—l am. etc.,James Begg. Dunedin, June 7. , . TO THE EDITOR Sir,—During the last fortnight .1 have been too busy to keep up with this interesting correspondence In which Mr James Begg and others discuss the question of how best to befriend the woolgrowers. Looking backwards to 1933-34, when our Import trade was in the doldrums and our London cash box full to overflowing, it is seen that Mr Begg, then a director of the Bank of New Zealand, pulled an oar in the crew that saved the exchange rate from sinking to the level of sterling, and fixed it high up on the 125 per cent, level to please the primary producers, who were encouraged to believe that the cheques they received for their produce would expand to that level also. But the fruition of this belief having proven elusive after five years of futile chasing, the trusting farmers axe now deemed to be ready for another dose of hopeful iridescence, -and again Mr Begg is advocating a free exchange as a new hope for the faithful. Thus we find him lending a hand in the first instance to inflate the exchange rate as a cure for depression, and now wanting to inflate it still further as n cure for prosperity, and always in the guise of the farmers’ (or at the present moment the woolgrowers’) friend, though, strange to say, the woolgrower himself could never get a penny of real benefit out of the inflation, the only potential winners being the woolgrowers’ “friends" How consistent and how astute! Pity it is that so many fanners are unable to see that this new star of promise alias a free exchange, is only the glint of rainbow gold, and would bring them nothing but disappointment and eventual loss. —I am, etc., -<■_ '' 'B/