EXCHANGE RATES

Wairarapa Daily Times, 14 January 1932, Page 5

EXCHANGE RATES

PRIMARY PRODUCERS VIEW. RESTRICTIONS REMOVAL URGED. WELLINGTON, Wednesday. The removal of restrictions upon exchange rates, which it was contended were being hampered with disastrous results to the farmers of New Zealand, was sought by a large deputation fully representative of New Zealand’s primary producing 'industries which waited on the Prime Minister and other members of the Cabinet to-day. It was contended that the exchange rates should be allowed to find their own level without such restrictions as were stated to exist under the Government Exchange Credits Pool recently established. All the speakers made particular reference to the plight of the primary producers and it was urged that if the exchange rates were freed, they would rise from. 10 per cent, to about 30 per cent., thus giving farmers a return for their produce comparable to that being received by their competitors overseas operating on high exchange rates. The argument was advanced that New Zealand could set about its economic rehabilitation as Australia had done, with high rates of exchange and it was asserted that this was the only way out of the present difficulties.

Full consideration to the whole question had been given earlier in the day by representatives of the New Zealand Meat Producers’ Board, the Dairy Producers’ Export Board, the Fruit Control Board, the Sheepowners’ Federation, and the Farmers’ Union, and the deputation waited upon Cabinet at the conclusion of a lengthy conference. In his reply, the Primo Minister promised that full consideration would be given to the question, although he pointed out that great difficulties would be presented by an increased exchange rate. He was favourable to the suggestion that a conference should be called between the Government, banks and primary producers and it is likely that this course will be adopted. It was announced later that Messrs. David Jones, W. A. lorhs, 11. D. Acland and W. D. Hunt had been appointed to represent the producers on any committee set up to investigate the question.—(P.A.).