EXCHANGE RATE.

Waikato Times, Volume 112, Issue 18803, 26 November 1932, Page 7

EXCHANGE RATE.

(To the Editor.) Sir,— Sharp contrasts of opinion aro rife oh the question of exchange, the conflicting party being the primary producer, who favours a rise in* exchange, as against the importer. As the former is recognised as being the “backbone of the country,” and the importer is more or less dependent on the success of the farmer, the latter, to my mind, should carry the day.

We are at the cross-roads, and to save disaster we must not take the wrong turning. Commodities essential to life are being produced at a loss, due principally to the inflation of the price of gold and of corresponding deflation in llie price of produce. Before the inflation, manipulation, and cornering of gold began that metal functioned admirably as a means of exchango as between trading countries; but its misuse at present by the holders inflating Us price is placing the producer In the hands of the gold manipulators, who are strangling legitimate trade, compelling the producer lo work at a loss, bringing about a state of slavery, by which the purchasing power of tlie people will ho reduced to nil, leaving the tradesman with unsaleable imported stock. It appears to me -that the suggested lib per cent, increase in the exchange, rate is justitled to keep pace with Hie ridiculous inflation of Hie price of gold by more than 50 per cent. One of the. remedies appears to he to create an Empire currency, based on value in Ihe form of commodities essential to life, in place of gold, which is neither food nor clothing.—l am, etc., ALEX. 11. WILKIE. Takapuna, November 2-i, 191)2.