EXCHANGE RATE

Wanganui Chronicle, Volume 79, Issue 66, 20 March 1935, Page 6

EXCHANGE RATE

REPLY TO MR. D. JONES THE OTHER POINT OF VIEW The views expressed by Mr. D. Jones upon the exchange rate, based on his observations during his recent visit to England, are challenged by the United Kingdom Manufacturers New Zealand Representatives’ Association. (Inc.), who have issued the following rejoinder: "Mr. Jones remarks not only convey the impression that the artificial exchange rate has nor had an adverse effect on imports from the United Kingdom, but that it has been almost welcomed by those dealing in the manufactured goods of the United Kingdom. “Mr. Jones is quoted as saying that ‘an attempt was made to prove that there was a strong opinion against the New Zealand exchange rate in Britain, but he had never found it.’ This association can only conclude that either Mr. Jones was no in contact with those who were most affected —the exporters of manufactured goods to New Zealand—or that he has construed, the

noted reticence of those at Home to say or do anything which might ’cause ill-feeling between the Dominions and the Homeland, as being an admission that the artificial rate of exchange has not had a harmful effect. "It is a fact that at the present time industries are being started in New Zealand manufacturing goods which wore previously imported f r om the United Kingdom solely as a result of the protection afforded bv the artificial exchange rate. It is. moreover, a fact that the increase in the price at which United Kingdom goods can be laid down in this market on account of the burden of exchange has definitely curtailed the consumption which New Zealand would normally provide. "This association has previously published letters from prominent manufacturers in the United Kingdom expressing their views on the artificial exchange in no uncertain terms, and has also definite evidence of previously good agencies for United Kingdom manufacturers beinj cancelled as a iesult of the impossibility of now landing the goods in New Zealand at a ’ ost which will enable them to be sold at a figure within the reach of the average purchaser. "This association would like to assure Mr. Jones and the general public that while the United Kingdom industrialists may appreciate the reasons which caused the exchange rate tn be pegged at 25 per cent., nevertheless the result has been definitely to their detriment in this market.' ’