EXCHANGE PROBLEM.

Waikato Times, Volume 112, Issue 18804, 28 November 1932, Page 7

EXCHANGE PROBLEM.

AUSTRALIAN VIEWS.

HIGH RATE FAVOURED.

BY BUSINESS & COMMERCIAL MEN

(Special to Times.) WELLINGTON, Monday. Business and commercial men in Perth and Brisbane, also the Premier of Western Australia, have replied by cable to Mr H. M. Campbell, M.P., who has made a number of inquiries in Australia as to the effect of the high exchange rate ruling there. Reduction Prejudicial. Mr A. H. Dickson, vice-president of the Perth Council of Industries, has cabled to 'Mr Campbell as follows: “Any reduction in exchange at present would be very prejudicial to our primary producting interest. Not Diminished Trade. * Bushell’s, Ltd., of Perth, have sent the following cablegram:—“As the largest importers and distributors of tea in the Commonwealth, our experience of high exchange has proved that it has not diminshed trade and has proved of benefit to Australia. Of General Benefit. ■An opinion from Brisbane is as follows “ [Referring ito 'statements in the Press that high exchange has not benefited Australia, wo are definitely of the opinion that, through the additional income accruing to producers owing to high exchange-, payable to exporters, such premium must benefit Australia generally. ‘Definite evidence exists that the producer derives the full benefit of the exchange. At a given period during tiie present wool season, Australian woolgrowers received in Australian currency Is 8d for identical wool realising 11 Ad in South Africa, namely, clean costs seventies average equalling 73} per cent, which corresponds exactly with the difference in the exchange. There is a similar comparison throughout all grades of wool produced in each country.—-Campbell, managing director, Primary Producers Co-operative Association, .Limited, Brisbane." Messrs. Burridge and Warren, Ltd., merchants, of Perth, advise as follows:—“ We are among the largest importers of jute and 'British merchandise for sale among the primary producers of Western Australia. We are emphatically of the opinion that the present exchange or an even higher rate is in the interests of not only the producers, but the community generally.” Could Not Carry On Without It. Sir James Mitchell, Premier of Western Australia, cables: —“It will probably interest you to know that the primary producers could not carry on without a high rate of exchange. It Is of the utmost importance that the rate should be maintained and I would be pleased to see it increased."

RATES RELIEF.

BANK’S SUGGESTION. “ LITTLE MATERIAL BENEFIT.” LOCAL OPINION. The opinion that the offer of the Bank of New Zealand to advance the Government money with which to pay rates to local bodies would not help farmers materially, was expressed by Mr. W. Newell, chairman of the Waikato County Council, in reply to a query. The money, said Mr. Newell, will have to be repaid sooner or later. .Air. Newell said the council had been endeavouring to obtain from the Government a renewal of Us grant which enabled rural local bodies to rebate 12A per cent, in rates last year. Good for Maintenance Work. Mr A. A. Woodward, the county engineer, emphasising that he was speaking purely from the working of the county point of view, said it would help the county considerably If the Government paid the rates, as a great many were in arrears. Unless a good percentage of the rates were paid the council would Pnd difficulty in maintaining the roads as there was as great a volume of traffic as ever. Currenoy System Inquiry. Mr. W. Boyd, of Matnngi, said the offer to pay the farmers’ rates would not he of material benefit, since rates formed hut a small part of the farmers’ obligations, and relief from them for one year would not alleviate their position ‘to any great extent.. Something much more substantial was necessary. He thought the cause of the trouble was to he found in the currency question. Unless something was done to stabilise prices for primary products it would be impossible for the country to meet its overseas commitments, and the nation and Individuals would be faced with insolvency. The first, essential was a thorough inquiry into Ihe whole system of currency. Few people in the Waikato would lie relieved by Ihe lifting of ihe land tax, for so much of the farming land in South Auckland was mortgaged, amf most of the occupants were already exempt, nr paid very little. Mr. Boyd said he did not like Ihe idea of homilies to producers, for if Hi esc were granted, they would have to he met by increased taxation, and the people bad enough to hear in taxation already.

NO BENEFIT TO SMALL FARMER

MR. FURNISS’ OPINION. The hanks arc simply trying to load on to the Government the liabilities which they arc now being 01111-ju-lled to hear as mortgagees,” said Mr. .1. 11. Kumiss, president of the Waikato suh-provincial branch of Ihe New Zealand Farmers' Union. “These proposals will henellt the large land owners almost exelnsively, particularly the large sheep-owners. They have no material applieal ion to (he dairy farmer, who does not pay the land lax. What afi'eels dairy farmers are the low prices, and the oilier is a minor matter compared with these. "In a large number of instances the banks are compelled to pay rates and land tax on estates hearing overdrafts in order to protect their titles. If these were unpaid and local bodies (Continued in next column.)

took action for recovery it would place I tie hanks’ position in jeopardy. “ II is no doubt an impudent attempt on the part of Ili o hanks to load the amount on to Hie country. The Government will have to pay and pay interesl on Ihe money for Ihe privilege of being allowed to pay. A good business deal for Ihe hanks! “ Tlie noise being made in Wellington by a certain section of the Coalition members in regard to raising of the exchange rate, is by representatives of I lie sheep-owners, not the dairy-farmers. The hanks’ offer is a “sop ’’ 1 0 them. "As a solution I favour the adoption of some scheme of stabilisation such as that outlined by Mr. H. M. Rush worth, and the placing of currency on a basis such as adopted in Sweden. “ll will only mean increased taxation to pay for the money necessary to meet the hankers’ proposals. The small farmer will have, to pay to henellt. the hanks, the large estate owners, and business people," eoneluded Mr. Furniss.