BUTTER RESTRICTIONS.

Waikato Times, Volume 113, Issue 18877, 22 February 1933, Page 8

BUTTER RESTRICTIONS.

EXCHANGE RATE BLAMED. MB. COATES’ DENIES CONTENTION. SAVED FROM COLLAPSE. WELLINGTON, Tuesday. The Wellington Business Men’s Committee’s suggestion that tho threat of restrictions on the supply of butter to the United Kingdom could best be met by a reconsideration of New Zealand’s exchange policy has drawn a reply from the Minister of Finance, Mr. Coates. When asked by the Hon. A. D. McLeod (Government—Wairarapa) in the House to-day whether he had seen ltic report of the committee on the question, Mr. Coates said tie had received a letter and had Sent a reply as follows: “ You infer that tills development is a result of Hie recent adjustment in the New Zealand exchange rate. It would he interesting lo know how this conclusion is arrived at. “ The present conditions and the outlook for Hie future in the butter market of the United Kingdom arc serious. Possible regulation of supplies from all sources—even though under the Ottawa agreement this could not for at least three years he applied to New Zealand dairy products without our consent —raises issues of the very highest significance for New Zealand.

“ Nobody ever pretended that tho adjustment in our exchange rate would raise London prices for our produce. What was argued was that when those prices were so disastrously low as to spell bankruptcy for our essential industries; a measure of relief was legitimately to ho obtained llirougli a mmllfied rale of ronu’rsion of sterling into New Zealand currency, and the declining prices in world markets in the last few weeks have justified that view, for the adjusted exchange rale has saved ns from a further coHipse. in farmers’ receipts which would luive been felt right through the Dominion. 1 ’