RATE OF EXCHANGE

Wanganui Chronicle, Volume 77, Issue 107, 8 May 1934, Page 4

RATE OF EXCHANGE

THE MINISTER CRITICISED EFFECT ON COST OF LIVING. STATEMENTS CHALLENGED. Although no resolution was carried, the members of the Wanganui Chamber of Commerce present at last night’s meeting appeared to be in agreement with the view expressed by the president, Mr A. S. Burgess, that it was ridiculous for the Minister of Finance (Kt. Hon, J. G. Coates) to state from the public platform in Hamilton that the raised exchange “was not having any appreciable effect on the cost of ' living.” “I do sot think that this or any other Chamber should let statements like that go without contradiction,” said Mr. Burgess, who contended that a ten-year-old schoolboy should be well aware that the exchange was added to every article imported to this country. Not only that, he said, it was passed on through the wholesale and retail profits as well, and by the time it was totalled up it would probably be found that the community was paying 30 per cent, at least. Judging by what Mr. Coates had said people might, think that the exchange could be absorbed by the profits. The speaker had had a good deal of experience in wholesale trading and certainly would not ‘ like to absorb the charge in the pro- ■ fits. Mr. Burgess also stated that Mr. j Coates was wrong when he said that the exchange had not had the effect jof diverting trade to Australia. I Mr A. E. Rankin held that the exchange between New Zealand and Australia affected that position. “Do you feel like moving a resolution?” he asked Mr. Burgess. Mr. Burgess: We have moved so many resolutions. The matter lapsed, but there was further- discussion on the statement of the Minister that the exchange would probably be lowered by small amounts. Mr. Burgess held that as the rate went up from 15 to 25 per cent, in the one move, it wa's only right that ii should come down the same day. It , would cause less inconvenience if it came off in “one junk,” he said.