WHEAT AND TOBACCO

Otago Witness, Issue 4048, 13 October 1931, Page 9

WHEAT AND TOBACCO

IMPORTS FROM AMERICA WELLINGTON, October 8. Information whether the new method of calculating the value of wheat and flour imported from North America would affect the sliding scale of wheat duties was sought by Mr C. L. Carr (Timaru) in an urgent question which he asked the Minister of Customs in the House this evening. Jf the sliding scale were affected Mr Carr asked in what manner and to what extent. The Minister eaid that purchases of wheat and flour from North America might be affected by reason of the fact that New Zealand’s currency was depreciated as compared with American money. Therefore, the landed costs of goods in New Zealand would be higher. In the particular circumstances he did not think any difference would be made, because under the sliding scale there was a maximum duty, anj when the price rose the duty fell correspondingly. A question along similar lines—namely, as to the effect of the present exchange rates on manufactured tobacco coming into New Zealand from America, Great Britain, and Australia, was sought by Mr J. S. Fletcher (Grey Lynn) in an urgent question he asked on behalf of Mr Black. Mr Downie Stewart replied that as New Zealand’s currency was depreciated in comparison with American money the same applied to England and Ireland at the present time. So far as Australia was concerned the converse was true, and the landed cost was lower where currencies were depreciated. There was a tendency for internal prices gradually to adjust themselves to the altered internal conditions, but until that took place the law which he had outlined applied.