THE Wairarapa Age THURSDAY, JULY 30, 1936. PRICES AND EXCHANGE.

Wairarapa Age, 30 July 1936, Page 4

THE Wairarapa Age THURSDAY, JULY 30, 1936. PRICES AND EXCHANGE.

When the Prime Minister said not long ago that the Government intended to il remove” the high exchange rate “at the proper time,” he added that the rate would not be reduced until the Government could arrange the alternative of guaranteed prices for all exported produce. While it disposed of the likelihood of any early reduction in the exchange rate, this statement* left the ultimate outlook rather vague. The Minister of Finance (the Hon. W. Nash) is now reported to have stated, in Wellington on Tuesday, that it would probably be 1938 before the Government could completely takeover the marketing of fruit, though he added that should the industry be endangered the Government would be prepared . to discuss immediately possible means of giving assistance. Though they fall short of being'completely conclusive, these statements by Ministers all tend to support an opinion that for the next year or two, at all events, no attempt will be made to alter the present rate of oversea exchange. As much, of course, is to be inferred still more confidently from internal and external factors affecting or dominating the economic position of the Dominion. The policy of the Government makes it more than ever necessary that the high exchange rate should be maintained. To a very great extent, industrial and other policy measures now taking effect sharpen the difference between the position of sheltered and unsheltered industries in this country. What may be called an all-round increase is being made in internal industrial costs—an increase that must be reflected in higher prices for goods and services. All the Prevention of Profiteering Bills in the world will not prevent this move to a higher price level so long as the policy now being put into effect by the Government is continued. The Prime Minister, as he is reported, now states that what the Government means to do is to prevent any undue rise in prices. The practical problem raised, however, concerns a rise in prices resulting inevitably from increased costs—a rise in prices which will balance in greater or lesser degree the higher wages to be paid in sheltered industries and will increase all the internal costs of unsheltered industries. What would happen to these industries, with or without guaranteed prices, if they were at the same time deprived of the advantage and benefit they derive now from the high exchange p'remium? The position into which we are moving under the policy of the Government plainly is one of further monetary inflation, over and above any inflation that resulted from the raising of the exchange. It is becoming more and more difficult as time goes on to reconcile with the rest of the Government’s policy its progressively deferred pro-

mise to lower the rate of exchange somehow and at some time. A NOTABLE JUBILEE. It will be agreed by all concerned that the sixtieth anniversary of the founding of the first State school in Masterton is a memorable and outstanding occasion and there should be no lack of whole-hearted support for the committee which met last evening to initiate plans for the worthy celebration of the anniversary next year. The occasion is the more noteworthy since a fair number of people are still with us whose personal memories go back, not only to the earliest days of the Central School, which was established some 54 years ago, but to the earlier State school which stood on part of the present Technical School site. Less than two years ago, numbers of old pupils assembled at the Central School, at the invitation of its present headmaster, Mr. E. G. Coddington, and delightedly paid honour to Mr. W. T. Grundy, who was headmaster for a year or two of the old State school and later of the Central School until 1888. No one who attended on that day can doubt that bright and happy memories are retained both of the old State school and of its successor. All will hope very sincerely that Mr. Grundy may be persuaded to attend the diamond jubilee celebrations next year. Two other former headmasters of the Central School, Messrs \V. H. Jackson and R. C. Drummond, are living in retirement in Masterton and link Mr. Grundy’s term with that of the present headmaster. Mr. G. R. Sykes attended the old State school as a pupil. In one way and another, the personal link with the olden time* should be particularly well maintained in the celebration of this school jubilee in Masterton. The organising committee has acted wisely in deciding to confer with the Masterton Borough Council and the A. and P. Association, as well as with the Central School , Committee and Parents ’ Association, before committing itself to final plans. It may be suggested that in shaping these plans, care should be taken to avoid undue crowding and competition with other events. The celebration of the school diamond jubilee should be given elbow room on its own account.

HERD TESTING. However they are destined to work out in other respects, it may be hoped that the new conditions upon which the dairy industry is now entering will impart a pronounced impetus to herd testing and other aids to more efficient and more profitable production. It was pointed out by the chairman of the Wairarapa Herd Testing Association (Mr. L. R. Wilton) in his address at the annual meeting of that organisation reported to-day, that herd testing and calf marking with their associated recording are at the broadest view an assured means of building op high producing dairy herds. Any dairy farmer who neglects to make use of these aids to efficient fanning when they are fairly available to him is wilfully working blindly to his own loss. Herd testing and its concomitants enable the farmer to strengthen and improve his herd at every point as it can be strengthened and improved in no other way. Testing opens and points the way to profitable work in many branches of herd husbandry, but in the absence of testing, much otherwise good work is liable to yield poorer results than it need. With these wellestablished facts in mind, it is a matter for remark that the number of cows under test in the Wairarapa last season was fewer by some hundreds than in the preceding season. In his survey, Mr. Wilton was able to point to some highly satisfactory features of the existing position, but there is still plenty of room for an increase in the number of cows under test. Until all cows that might profitably be tested are being tested, a proportion of our dairy farmers will be losing or going without something they might easily gain.