OVERSEAS EXCHANGE

Taranaki Daily News, 28 July 1932, Page 9

OVERSEAS EXCHANGE

ARTIFICIAL RATE OPPOSED. WELLINGTON BUSINESS MEN. “All attempts to diverge from the normal and natural rate of exchange in accord with the Dominion’s trading position will be vigorously opposed by this committee,” stated a clause in a report from the importers’ committee which was adopted by the council of' the Wellington Chamber of Commerce on Tuesday evening. “The subject of an artificially high rate of exchange has again been given consideration,” the committee reported, “and the importers’ committee of the chamber records its strong exception to propaganda which has appeared advocating an abnormally and unjustifiably high artificial exchange of 25 to 30 percent. The committee firmly believes that the present rate of 10 per cent.,

although slightly higher than conditions warrant, is in the best interests of the Dominion as a whole. In putting forward these views the committee reiterates that if it is found that New Zealand credits are being used outside the country to the Dominion’s disadvantage the Government should’ take immediate steps in order to prevent it. “The importers’ committee views with alarm the statement from. Mr. W. Machin bearing upon the subject of. exchange rates. Although acknowledging that Mr. Machin was then speaking as a private individual, it is not possible in the minds of the committee to feel that he dissociates himself in such views from the position he holds as president of the New Zealand Chambers of Commerce.” Mr. A. D. Kerr, who presided, said the importers of the Dominion had not been able to put forward their views in face of propaganda which had been put out by the other side. The report was adopted on the motion of Mr. W. F. Cuthbertson.-