EXCHANGE CONTROL

Wairarapa Daily Times, 13 January 1932, Page 5

EXCHANGE CONTROL

AN AUCKKLAND PROTEST. AUCKLAND, Tuesday. An emphatic protest against the Government’s decision to control the London exchange at the preesnt level has been forwarded to the Prime Minister, the Right Hon. G. W. Rorbes, following a meeting of the executive of the North Auckland Dairy Companies’ Association: —

Tho letter states: “The recent exproved that under free operation of supply and demand the exchange rates would rise a further 15 or 20 per cent. The Government’s decision, therefore, amounts to further taxation of all primary producers to the extent of some 14 per cent, on gross income. The whole country depends on the returns of the primary producers, who need greater price encouragement. This would have come quickly in the shape of a higher exchange rate but for the Government’s intervention.” Regarding the argument that with a high exchange premium the Government would find it costly to obtain funds, the association says: “A higher exchange premium distributed among the producers would be helpful to the country’s restoration. The association urges reconsideration of the decision.” —(P.A.).