BITTER CRITICISM

Poverty Bay Herald, Volume LV, Issue 17227, 5 April 1930, Page 5

BITTER CRITICISM

MEW EXCHANGE BATES HANDICAP TO TEADE ■v (Special to the Herald.) CHKISTCHURCH, this day. Strong criticism of 'the decision 'made by the Associated Banks to increase) the telegraphic rates from 72s <sd to 100 s in the £IOO was made by a leading business man of the city. This gentleman, who has studied •economic questions in New Zealand " and abroad, was bitter in his criticism of the two New Zealand banks which he declared could have saved the people of New Zealand from a disastrous immediate future, without any real harm to themselves. He took a : very serious view of the position, claiming that trade would suffer -severely as a result of the increase in the exchange. . As a solution of 'the financial depression, he said that a desperate remedy anight have to be found in such a step as the stopping for 12 months of the importation of motor cars into New Zealand. Thus, he said, money could -be kept in the country, more so as most of the ears were imported from foreign • countries. Discussing the increase, he said: "I* might be well to consider whether the New Zealand hanks should be made, by legislation, to protect farming interests and New Zealand interests first. Our. banks, the ißank of Now Zealand and the National Bank of 'New. Zealand, are not to be swayed in the same way as Australian banks are at present. PRUDENCE OF NO AVAIL -. "New Zealand people have been thrifty in the past, and have not lived beyond their incomes. Our exports have exceeded our imports by •millions, but it seems now that all our prudence has been of no avail when we.can be so easily and quickly overwhelmed by Australian affairs. Money is a commodity and moves quickly from one country to another. At the B.ime time the'Bank of England is able to protect the British public, while the American banking system is also adapted to look after the American people." . "It would seem that the Bank of New Zealand, particularly, should look after the New Zealand people, seeing that they so hopefully turned to us for rescue when this bank was overwhelmed in the 'eighties. It would ecem that it is of no more use to us .than any ordinary Australian bank trading The New Zealand ■banks have made huge profits, and are likely to make even bigger profits un4er these new circumstances. The position is critical, because the manufacturers in Britain must be further seriously affected by the increase an the exchange. They are already considering whether they can give us further discounts and lower prices so as to keep their machinery going. Erom the Empire point of view the increa.se is disastrous, especially as it may suddenly be further increased with little or no notice."