HIGH EXCHANGE BENEFIT

Poverty Bay Herald, Volume LXII, Issue 18817, 21 September 1935, Page 5

HIGH EXCHANGE BENEFIT

ESSENTIAL TO DOMINION SYDNEY TOURIST’S VIEW (Elec. Tel. Copyright—United Press Assd.) SYDNEY, Sept. 20. “When‘one hears important men and newspapers advocating modification of, or the abolition of, the present rate ot exchange between New Zaland and Britain, one yannot but feel astonished,’’ said Mr George Patterson,, a „\yell-l>nown businessman 'wild recently returned- to Sydney after a visit to New Zealand. In the course of an interview with, the New Zealand Press Association, Mr Patterson said': “We are under the impression that, fundamentally, the position of New Zealand is analagous to .that of Australia as far as exports, are concerned, and that the absolute backbone of both countries- is. the strength of its primary production and ready sale.

“It is not true that the existing rate of exchange in New Zealand, as in Australia, is absolutely dictated by the vital needs of the agricultural community? Is it not a fact that, with the' abolition of exchange bv New Zealand and the retention of exchange by'Australia, the latter would immediately be in a position to undersell New Zealand overseas in those agricultural commodities in which the two countries are at present competitive?” Mr Patterson went on to express the opinion that there had been an improvement in every direction in the volume of business in New Zealand, with balance sheets once again showing satisfactory profits. , ■ “One roads of the New Zealand Budget for the forthcoming year with an excess of revenue over expenditure,” lie continued. “That, unquestionably, will make tho mouths of at least, five State Treasurers in Australia water. Again it is an amair.ing fact that the New Zealand public debt was reduced during the current year by £22,000,000 and there was a reduction in unemployment. This situation is achieved despite the fact that. €5.630.000 is to be spent on rmblic works (presumably out of the Budget!; that salaries are to be restored by 7j per cent and that restorations in pensions and a reduction in the wages tax are to be made.”