EXCHANGE & ALTERNATIVE

Wairarapa Age, 6 July 1936, Page 5

EXCHANGE & ALTERNATIVE

GUARANTEED PRICES FOR ALL EXPORT PRODUCE. NO REMOVAL MEANTIME. STATEMENT BY MR. SAVAGE, L WELLINGTON, July 4. Another positive statement that at the proper time the existing high exchange rate will be dealt with was made by the Prime Minister (the Rt. Hon. M. J. Savage) to-day:— Mr. Savage pointed out that Uie Government's plans were Jo provide a stable foundation for the standard of living of New Zealand, and that there could be no stable foundation other than that which is based on what the country produces. “The exchange rate,” he continued, “is not to be dealt with until the Government is in the position to provide the alternative, and that alternative is guaranteed prices for all forms of our exported produce. This not a thing which can be donk overnight So far W& have only dealt with the dairy exporter, but it will ba quite clear to anyone who gives consideration to it that the rate of exchange cannot be removed until a substantial substitute has been provided. The substitute we have is the guaranteed price system, which needs a good deal of machinery nnd cannot be brought into existence overnight. But the rate of exchange will have to come off. It is only a question of providing the alternative, and the time and method of removing it.”