THE EXCHANGE QUESTION

Poverty Bay Herald, Volume LIX, Issue 17951, 1 December 1932, Page 4

THE EXCHANGE QUESTION

(To the Editor oi the Herald.) Sir,—Some time ago a self-appointed Exchange Committee (including a retiring Minister of the Crown) supposed to be working in farmers’ interests, set itself to induce the Government to institute higher exchange. The hanks opposed this, and the Exchange Committee faded away, letters requesting information remaining unanswered. Then Ottawa Conference came to certain decisions which will mean reduced protective duties. It is now being freely stated that the banks are prepared to agree to a high exchange, provided that any central banking legislation put through accords with their wishes. An agrarian Parliamentary “bloc” is said to bo pressing for pegged high exchange. It is open ti question whether this “bloc” is not formed to assist or excuse the Government in doing what it desires to do. High exchange may not only cancel reduced duties later on, but, with selection of duties, chosjng those that are not protective, -may quite easily result in great increases of costs. All the possibilities and ramifications of high exchange with tariff manipulations cannot he dealt with in this letter. The scheme is insidious. What matters is that it will fail as other stunts have failed, and as the same combination has failed most dismally in Australia, to relieve unemployment and facilitate production for export. The public will, in the long run, judge by results and a long course of being fooled may have dangerous effects on the public’s temper. In conclusion, may I ask why, if a pegged exchange is so desirable for farming, the Farmers’ Union has hitherto resolutely refused to adopt it as a policy? Farming opinion has been misrepresented. No doubt propaganda ! n time will have its intended effect, but the fact is that up to the present farm ing opinion on the subject, expressed by resolutions, has favored a free exchange. —I am, etc., A. E. ROBINSON, Auckland Provincial Secretary.