OTHER PEOPLE’S IDEAS

Wairarapa Times-Age, 27 May 1939, Page 4

OTHER PEOPLE’S IDEAS

THE HIGH EXCHANGE RATE

(To the Editor.) Sir,—Permit me to thank you for publishing my letter on the high exchange in yesterday’s issue. Allow me to say that my authorities for the facts given are the New Zealand "Year Book,” the "Monetary Review” and the economic report of the League of Nations. Let me add that since 1914 we have trebled our public debt in 20 years, from £99 million in 1914 to £302 million in 1934. The main item is, of course, the world war, but the next is the high exchange which in 1933 increased our public debt in London by 25 per cent, from £l6l million to £2OO million and besides that compelled the Government of that day to borrow £2O million in London, to redeem the Treasury bills issued to pay the £l9£- million indemnity under the Bank’s Exchange Indemnity Act. In addition there has been a considerable charge on the Consolidated Fund to meet further losses due to the high exchange. So that altogether the country has lost upwards of £7O million —not much less than the cost of the war. That is how our public debt in 20 years has grown from £B7 per head of population in 1914 to £195 per head in 1934. And if the exchange is to be raised by 15 per cent to 40 per cent, does not that mean another £3O million added to our debt in London, making at least £9O million total loss by the high exchange, without counting the indemnity payable to the banks under the 1934 Finance Act, which says that if the exchange is raised again, as it is now evidently intended to be, then the Consolidated Fund is to meet the loss. That would mean at least’ £lO million, making a total increase of our public debt of over £lOO millions, involving an interest charge of at least four or five millions a year. In other words, the exchange has cost the country as much and has proved itself as ruinous as the war —that is to say financially. The present writer belongs to no political party. His only aim is to bring the facts of the case to the notice of the general public, and then the public and the Government can do as they see fit. Consciously or not, the farmers are either the dupes or the victims of the vast financial interests in London. But is there nothing to go down on the credit side of the high exchange? Only this, that about four years ago the favourable balance of payments to the credit of the Home merchants was reported to have been increased to.about £lOO million, largely due to the high exchange, and the low values of our produce in London had'increased the commodity value of loans by about 40 per cent. Can any honest and intelligent person who cares for the best interests of this debt-ridden country ever be an advocate of the high exchange.—Yours, etc., , HANS C. THOMSEN. ' Masterton, May 24. TRUST LANDS TRUST (To the Editor.) Sir,--Upon a number of occasions, during the last few weeks, reference has been made in. the “Times-Age” to the Trust Lands Trust. As I am a comparatively new arrival in Masterton and not knowing anything of the origin and purpose of the said Trust, I enquired of a number of local people, who were, to my surprise nearly as much in the dark as myself re same. A brief outline of the history and objects of this interesting institution would, no doubt, be appreciated by a number of your readers. —I am, etc., M.M. Masterton, May 25.

The Masterton Trust Lands Trust administers lands held on trust, the revenue from which is devoted to educational, library and public utility purposes. The Trust was founded in 1871. When Masterton was originally settled 22 town acres were never taken up and after fruitless efforts had been made to dispose of these sections a proposal was put forward and adopted to retain these lands for the benefit of the community. By Act of Parliament the Trust was constituted to hold these lands in perpetuity and to use its funds for the purposes stated within the Masterton Small farm Area, which embraces the borough and a small area of adjoining land. Last year the income of the Trust amounted to £6244. Grants are made annually, though in recent years these have been somewhat curtailed on account of damage suffered by Trust buildings in the earthquake of 1934. Full details of the Trust’s operations are published in the annual report, a copy of which is obtainable from the secretary, Mr W. B. Yates. The history of the Trust haSj been reviewed on many occasions in local papers _