THE EXCHANGE RATE

Taranaki Daily News, 19 April 1934, Page 4

THE EXCHANGE RATE

NOT TO BE DROPPED. “NOTHING MORE SUICIDAL.” Statements were being persistently made that the Government intended to drop the ‘exchange rate, but nothing would be more suicidal, said the Prime Minister (Rt Hon. G. W. Forbes) in an address to the Wellington Chamber of Commerce on Tuesday evening. A sudden drop in the rate would destroy the stability that the president mentioned in his address. It would penalise the trading section of the community that was now trading on the full reliance that the Government would not alter the rate. As far as the Government was concerned it had no intention of lowering the rate. “If anybody thinks he is going to make a profit, by holding back until the rate is reduced,.he is going to be disappointed,” said the Prime Minister. • z ■ : Mr. Forbes took up the chamber’s reference to Government interference in business. In almost every country Gov- . ernments were “interfering in busines.” Quotas were being applied, and a Government had to hee that goods imported were fairly distributed. Every country was setting out to look to its own affairs, and was bringing about a systern whereby its exports were balanced by its imports. One would like to return to the times of free and unfettered trade, but it was idle for New Zealand to think it could escape the actions of other countries. Internal trade was now being safeguarded by all nations, which were leaving international trade to look after itself. i

“When I see chambers of commerce passing resolutions about Government interference in trade, I often wonder if they ever take a look around,” said the Prime Minister. “Britain has abandoned traditional free trade and a revolution is taking place in world trade, yet we in New Zealand want to go on in the same old way. A Government would be very craven if it ran away from it* difficulties and did not attempt to deal with them as it thought best in the interests of all sections.” Mr. Forbes concluded by appealing for backing from all sections of the community. There could be no confidence if there was continual fault-find-ing and bickering.