THE RATE OF EXCHANGE.
EFFECT ON EXPORTS. CRITICISM OF GOVERNMENT. PROTEST BY BUSINESS MEN. fßv Telegraph.—Press Association.) WELLIN GT ON, Wednesday. A reply sent by the Businessmen’s Committee to lion. J. G. Coates to-day, says that they had already directed attention to the fact that the . exchange depreciation was very liable to affect the market for the country’s exports. This was particularly likely to happen.
They think that in 'the case of a country such as 'this, whose only important market is glutted, when sellers are in a weak position and buyers In a strong one, there is a tendency for any export bounty to pass to the buyers in reduced sale values. They do not suppose 'that it will be contested that the exchange depreciation policy is not only to give a bounty to the exporters but also to. impose a serious handicap on British manufacturers exporting to New Zealand. It seems only natural that the British farmers should resent the dumping on the Home market of bounty-fed dairy produce at less than the cost of production, while the effect uf the exchange depreciation in reducing British exports will at the same time deprive us of the sympathy of British Industrialists, and incline them to less sympathetic consideration to the demands of their own farmers.
It is only natural that such a situation 'Should toe created. It was deadly foreseen and publicly expressed by the committee on a previous occasion, and they think a serious load of responsibility lies on the shoulders of the Government for bringing about such a situation, in which the sympathies of the British market, both import and export, are being so disastrously alienated. In these circumstances the committee resents the (imputation that they arc doing poor service to New Zealand. They consider that in fighting this Issue they are acting in the interests of the country and endeavouring to counterbalance what they think is a wrong method of assisting the primary producer.
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Bibliographic details
Waikato Times, Volume 113, Issue 18877, 22 February 1933, Page 8
Word Count
328THE RATE OF EXCHANGE. Waikato Times, Volume 113, Issue 18877, 22 February 1933, Page 8
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