EXCHANGE MOVE

Taranaki Daily News, 19 November 1932, Page 7

EXCHANGE MOVE

DETAILS MADE PUBLIC PLEA BY THIRTY MEMBERS URGENT NEED, OF. FARMERS RESPONSIBILITY OF BANKS OPINION FROM AUSTRALIA (By Wire— Parliamentary Reporter.) Wellington, Last Night. Further details regarding the attitude of the Government members who are asking for an increase in the exchange rate for the benefit of the primary, producers of New Zealand was given man interview by Mr. A. D. McLeod (Wairarapa) to-day. Mr. McLeod detailed the action that had been taken and gave a full account of the proposition that had been placed before the Prime Minister, but did not give any particulars regarding Sir Henry Buckletons suggestion that relief should be given by means of borrowed money. However, it is learned on good authority , that this suggestion was made by Sir Henry, only to be rejected as stated in yesterday's- report. . ’ . Mr. McLeod said that in view of statements being published and the manner in which his name and the names of others had been prominently associated with' the present controversy he felt that the full facts as far as he knew them should now be given to the public. It was quite correct that more than a week ago Messrs £•’ T. D. Burnett, H. M. Campbell, K. &• Williams and himself, but not Mr. W. P. Endean, had had a conversation with the Prime Minister in the lobby and had told him there was a danger of a debate being forced on the floor of the House concerning the serious position of the primary producers. WOULD BE PLACED OFF-SIDE. “We assured Mr. Forbes that we were not in sympathy with such, , a “°Xe> Mr. McLeod added, “but we said that if a debate did take place many of us would be placed off-side with owr constituents if we did not take part. Mr. Forbes thanked us for mentioning the matter to him and told us frankly that the Government was gravely concerned about the position of the farmers in general, arid through them the position ■of all sections of the community. He concluded by suggesting that we interview the general manager of the Same of New Zealand and hear his views as the Government’s banker on the farmers’ problems. “We did so,” continued Mr. McLeod, “but beyond discussing the possibility of bonuses Sir Henry Buckleton declined to discuss exchange, apart from any opinion which might be held by his directors which, of course, he was not in a position to discuss. This was followed, as is now generally known, by the deputation Which waited Prime Minister and his Cabinet on Wednesday evening.” . , , , Mr. McLeod' said he had not looked for any prominence in that deputation, but the Reform group of the deputation requested him to act as the spokesman. This he consented, to do, but only by way of a written statement which had previously been approved. He assured the Prime Minister that the deputation had no desire to embarrass the Government in any way. He then read a prepared statement as follows:—

DEPUTATION’S REQUEST. “This deputation represents 30 supporters of thfe Coalition, apart from members of the Cabinet, who daily are becoming more perturbed as to the serious position of this country’s foundation industry—its great pastoral industry. By the pastoral industry we mean the industry which in meat, wool, dairy produce and by-products is responsible for more than 95 per cent, of New Zealand’s total exports. We feel that if something is not immediately attempted here in New Zealand to bring the price levels of pastoral products more in line with the costs directly or indirectly borne by the pastoral industry in the shape of wages, interest and other costs, the end of the present exporting season is going to find the vast majority of pastoral producers insolvent and the economic position of* the country seriously jeopardised. recognise to the full the difnculties of the Government, and this deputation has nd wish to add to those difficulties. We, however, honestly feel fha't' unless some further earnest and determined attempt is made by the Government to restore a degree of equilibrium to the country’s internal price levels the national results before next winter is over will be far from pleasant We feel that an adjustment in the internal price level can be brought about only in one of three ways:— (1) By further drastic cuts in wages and interest; (2) by the payment of substantial subsidies to those in the pastoral industry; (3) by further raising die exchange against the sterling through exports. • “We do not urge further drastic cuts, more especially in wages, and we cannot support subsidies if they are provided frdm borrowed moneys. We do, however, believe that much can be accomplished toward all-round relief by the raising of the exchange to at least 25 per cent, over the sterling, and we feel that every effort should be made toward getting the trading banks of New Zealand to adopt such a policy. CENTRAL BANK “DANGER.” “We confess to fiaving no clear idea as yet as to what is chiefly aimed at in the setting up of a central bank. If one of the chief aims is to bring the New Zealand currency to a par with the sterling as early aS possible we believe that a very grave risk is being taken. However, the necessity for the Government attempting something on behalf of the pastoral industry is exceedingly urgent, and this is the only reason for so large a deputation of members waiting upon you as Prime Minister of New Zealand.” On behalf of the United Party members Mr. C. H. Clinkard (Rotorua) expressed his views briefly. “In justice to Mr. Endean,” continued Mr. McLeod, “it should be stated that he took no part in organising the deputation to the Prime Minister, but his anxiety for the primary producers and the country generally under the present deplorable conditions was well known. On Wednesday last, however, he sent the following cablegram to the general manager of one of the largest importing as well as manufacturing firms in the Commonwealth: “Has the high rate of exchange been to the benefit of Australia?” Tire reply received was: “Definitely yes. The initial immediate benefit to the export producer was ultimately reflected in stabilised price levels and increased purchasing power. The general benefits of a high exchange are now recognised. The difference of opinion now is only whether the present rate should be increased.