RATE OF EXCHANGE.

Waikato Times, Volume 114, Issue 19054, 19 September 1933, Page 4

RATE OF EXCHANGE.

COMMENT BY* MR. W. IORN» IMPORT TRADE INJURED. (By Telegraph.—Press Association.) WELLINGTON, Monday. Comment on New Zealand’s action in raising the exchange rate was made to-day -by Mr. W. A. lorns, chairman of the New Zealand Dairy Board, who returned from London yesterday. “It lias frequently been stated here that the rise in the exchange rate had been responsible for the idea of the British Cabinet asking New Zealand to accept restriction on the export of New Zealand dairy produce,” said Mr. lorns. “That is absolutely contrary to fact. Not at any time during discussions on the proposed restrictions did the British Cabinet take any exception to the raising of the exchange v rate.

“It was interesting to be told by several of the London general managers of New Zealand trading hanks that New Zealand had no option hut to raise the exchange rate as England and Australia had altered the value of their currency to assist the oountry generally. One man stated he was surprised that New Zealand had not raised the exchange rate 12 to 18 months previously. These statements were not made to me by anyone connected with the Australian bank that advocated the raising of the exchange rate. Many large exporters expressed the opinion that the depreciation of the English pound had materially assisted them and no exception could ba taken to New Zealand doing like* wise.

"I am sorry the -controversy.; ovef the exchange rate has not abated and the Import trade Is certainly b'elng Injured by suggestions put about that there were going to be early alterations in the rate. On several occasions it was pointed out to me by exporters that requests had been sent from New Zealand to them to forward protests against the rise in the exchange- in New Zealand, but they pointed out how ridiculous it would be for them to do so when much benefit had accrued to their export trade by England depreciating her currency."