BURDEN OF EXCHANGE

Waipukurau Press, Volume XXVIII, Issue 28, 25 January 1933, Page 2

BURDEN OF EXCHANGE

UPON THE FARMER SERIOUS DISADVANTAGE DUNEDIN, Last Night. Discussing trading difficulties which acected New Zealand compared with countries of the Old World to-day Mr 11. Trouser, the representative of a firm of agricultural implement makers in Mannheim, Germany, referred to what he described as one of the most serious disadvantages under which the Dominion, in common with Australia, laboured. It wms the absurdly high level of overhead costs with respect to importation of goods from overseas. “My firm’s manufactures, which are widely used in New Zealand, arc sold

j at exactly IHO per cent more than they j bring in Europe. Exchange on Loin j lon, in view of departure from gold ! standard, accounts for 35 per cent.; exchange New Zealand on London for further 25 per cent., and freight which is unavoidable and harbour dues and selling costs make up the remaining 40 per cent.” A product costing £lOO in Germany was sold for £2OO in New Zealand, and an extra‘£loo was paid by the farmer, hut not to the manufacturer; it simply disappeared, and no one knew who really got tho money. If ho sold a £250 tractor in New Zealand, it cost tho Dominion land owner £5OO, and neither farmer nor manufacturer was any better off for the higher figure paid.—Dominion.