HIGH EXCHANGE AND BONUSES.

Taranaki Daily News, 23 November 1932, Page 3

HIGH EXCHANGE AND BONUSES.

(To the Editor.) Sir,—Will you give me space to remark upon the views of some high authorities on finance, high exchange effects, etc., as expressed in your paper of the 21st. These views rather surprised me, and possibly will surprise a number of farmers. For instance, the writer claims that the “bonus” will not benefit the farmer, as it will only go to his creditors. The rate of exchange being higher will enable these creditors to be paid off. How can any reasonable man who knows the first thing about finance talk this way? The thing that would save New Zealand would be the liquidation of the farmers’ mortgages and commitments. The soil is good, the men and women are not frightened of work, and the climate is perfect. Yet we are heavily in debt, and anything that would lighten this debt would be good for the country. The money could then be passed along by our mortgagors and lent to other people or works, perhaps helping to employ hundreds. Certainly the creditors would not just sit on the money returned by the farmers. There would have to be an outlet for it; —I am, etc., H. HOGG. Manaia, November 21.