THE EXCHANGE QUESTION

Patea Mail, Volume LIII, 14 March 1932, Page 3

THE EXCHANGE QUESTION

MB. H. G. DICKIE'S VIEWS. “ What effect is it going to have on discussion at Ottawa if our exchange goes up?'' asked Mr. H. G. Dickie, Patca, in the course of a very interesting statement on the sneject fiom the viewpoint of a country member in the House, says a. correspondent. South Africa and Canada, he pointed out, were on the gold standard and these countries would have a perfect right to draw attention to the fact that Australia and New Zealand, assuming a 30 per cent, rate of exchange prevailed, were putting up a barrier to free trade with Britain to the extent of a 30 per cent, surcharge against her goods. “And they would have a right, to ask for preferential treatment as against those countries.'' Mr. Dickie went on to say that he had no objection to letting exchange go free to find its natural level, although some safeguards would have to be imposed to prevent New Zealand being used for other than the benefit of our own people. DIFFERENT SECTIONS OF FARMERS. A high exchange would be regarded as a bonus to our producers, many of whom were in desperate straits, but to give a bonus through hiigh pegged rates would mean that one portion of the farming industry, which happened to be in a fairly good position, would receive exactly the same assistance as a section almost on the verge of bank-

ruptcy. All our products were on a low level, but the dairy farmer was in a better position than the sheep farmer. An exchange rate of 30 per cent, would mean only a halfpenny a pound extra for the vvoollgrowcr, but it would enable the dairy farmer to get twopence a pound extra for his butter-fat.

"The fairest way,” continued Mr. Dickie, "is to give an,export bonus according to the state of those industries, although at the same time I have no objection to exchange running free.” Ho agreed with, suggestions that a false high rate would mefn an increase in the cost of living. N PROFESSOR COPLAND’S POSITION.

Turning to the Economists’ Committee’s report, the speaker declared that lie was surprised to find Professor Copland on that committee. “In my .opinion he is more or less a mercenary, for he came over here in the employ of a banking institution.” -Mr. J. G. Coates: “No.” . Mr. Dickie: “The Minister says that is not correct, but I will say that he came over here last year in the employ of that institution.” A Labour Member: “That is correct.”

Mr. Dickie added that on a recent occasion in a conversation with Professor Copland, he found that the visitor condemned inflation because, if a further crisis arose, more inflation would be resorted to.

Mr. E. A. Wright: “Now ho advo cates it.”

Mr. Dickie; “I do not know. This report makes no recommendations, but states certain cases and leaves it to our judgment whether we take it or leave it. There is no recommendation. * 1