DEMOCRATS AND EXCHANGE RATE.

Taranaki Daily News, 28 October 1935, Page 7

DEMOCRATS AND EXCHANGE RATE.

(To the Editor.)

Sir,—One extraordinary statement by the Democrat candidates is that the exchange policy has only helped the big farmer and not assisted the small man. This is tantamount to saying that the small farmer does not receive the extra bonus which the exchange gives—a stupid and untrue assertion. It is true that the large producers receive a greater sum than, the small producer, but each receives the benefit in proportion to his business. .

To differentiate as is proposed by the Democrats would entail: (1) A sliding scale of incomes which would, carry corresponding bonuses; (2) an army of inspectors with power to inquire into every farmer’s business to arrive at his production and income in order to decide what scale of bonus he was entitled to. This would be costly, impracticable and objectionable. If an export bonus is to be given it whether by direct cash subsidy or indirect bonus by exchange, it must be general and include every exporter and be proportionate to his production, which is in reahty depreciated currency. The exchange policy acts quickly, is the simplest method because it is automatic, acts' quickly and calls for no new machinery.—l am, etc., PRODUCER. Stratford, Oct. 24.