THE EXCHANGE RATE.

Waikato Times, Volume 118, Issue 19665, 27 August 1935, Page 9

THE EXCHANGE RATE.

(To the Editor.) Sir. —-At the annual meeting of suppliers to the New Zealand Co-opera-tive Dairy Company last Wednesday Mr C. J. 'Parlane, general manager of the company, mentioned that the exchange rate of 25 per cent, had benefited suppliers to the company to the tune of £6G6,125 —a very tidy ■sum. Tho persistent cry is for more purchasing power, and amongst the most persistent fmiore monoy" advocates are those who denounce the exchange rate. llow can they reconcile the two things ? Be it noted,, also, that Hid £606,125 is the benefit received by one company on one section of produce —• dairying. There arc numerous other companies exporting dairy produce, all of which must have received benefit. though perhaps to a less degree, so the total figure must be greatly in excess of the sum mentioned. Again, the same benefit accrues from meat, wool, flax, etc. Therefore the amount of advantage must run into millions. Look at it another way: New Zealand’s exports are greater than her imports. Therefore the cost of the exchange must be to the advantage of the Dominion. Importers and others fancy they are being penalised, but if they were to view the whole field I think they would bo forced to the conclusion that they are better off with the exchange than they would be without it, I The ideal, no doubt, Is free and un- 1 trammelled trade, but that is not attainable just at this juncture, and it seems to me that New Zealand would be ill-advised at present to tamper with the exchange rate, which is fair in that its exactions and its benefits are shared by all.—l am, etc., MACK. | Te Awamutu, August 24, 1935. i