EXCHANGE RATE

Timaru Herald, Volume CXLVI, Issue 21361, 2 June 1939, Page 8

EXCHANGE RATE

FREE MOVEMENT FAVOURED BY FARMERS By Telegraph—Press Association CHRISTCHURCH, June 1. A proposal to permit the exchange rate to. determine itself as made in a report by the joint committee of the New Zealand Farmers’ Union and the New Zealand Sheepowmers’ Federation was endorsed by a large majority at the annual conference of the North Canterbury district of the Farmers' Union. Little support was given an alternative motion by Mr L. McCaskey (Omihl) in favour of a guaranteed price for sheepfarmers. Mr McCaskey said that money could be found for the guaranteed price on the basis of an average over 10 years from 1925 to 1935.

The main opposition to “free exchange,” came from Mr J. W. D. Hall, the retiring vice-president, who attacked the committee's report after it had been explained by the Dominion president, Mr W. W. Mulholland, and Mr G. C. Warren (Darfield). Mr Hall said the report contained some very dangerous statements. He denied that a guaranteed price or the wheat subsidy had caused a decrease in the production of dairy produce and wool, for which bad seasons and facial eczema were responsible. The raising of the exchange or allowing it to rise would have an inflationary effect which would finally reach the farmer. “What we need is more orderly marketing to ensure that our produce returns its full value,” said Mr Hall. “I am sure there are elements preying on the farmer which have not yet been touched. Till we get cooperative marketing we will be in difficulties.”