N.Z’S. EXCHANGE RATE

Waikato Times, Volume 117, Issue 19565, 2 May 1935, Page 9

N.Z’S. EXCHANGE RATE

“GODSEND TO COUNTRY.” DEFENDED BY MR H. M. CAMPBELL "The 2.5 per cent. . exchange 'has gone a long way towards saving us. It •has done a great deal more for this country than some people will give it credit,” said Mr H. M. 'Campbell, M.P. for Hawke’s Bay, when addressing a meeting of settlers at Sherenden. ‘‘The town man damns it," he con- 3 tinued, “but to state that importers have suffered a loss toy paying extra is quite wrong. As the result of . this exchange rate the farmer has -had a few pounds to spend In tho town which he otherwise would not have toad. Ttoe clothier says he could sell a suit of olothes for £4 before the high rate was put on, but who could he sell them to when the farmers j had no money? He could now sell some of the isame class of suits be- ! cause of the extra money that tho \ farmers had received. I say it was better for the shopkeeper to be able to do some business than none at all. j In my opinion it has been a perfect j godsend to the farmer. If it could have been raised even a 'little more I would like to have seen it, tout I think the amount fixed was about the limit.

“My Latoour • friends say that they are going to overcome the difficulty by fixing prices, but how they _ are going to do it I don’t know. The' exohango is a form of inflation, and I fail to see how it can toe doubled. Why don’t they come out and show how it can be done? If it can toe done successfully, then I am with them. I have discussed the question with men possessing considerable knowledge of finance, and their opinion is that we are on the limit.

“Australia went a great deal further than vve did and prohibited various imports in addition to the high exchange. The advantage comes to the farmer in that he can pay his rent and wages with this inflated money, while he is able to pay extra on his imported articles. The way exports are increasing is encouraging, 1 as’ it will enable commitments in England to be met easier.

“I repeat that if Labour can show us how these things can be done to the benefit of the country I am with them.”