EXCHANGE RATE.

Waikato Times, Volume 119, Issue 19799, 1 February 1936, Page 9

EXCHANGE RATE.

(To the Editor). Sir,—Your readers will be very interested in the views of Professor D. B. Copland, In your issue of June 29. The professor was one time economic adviser to the late New Zealand Government, and I believe the gentleman is still economic adviser to v the Bank of New South Wales. The public will remember that Mr Copland was brought to New Zealand at the time of the exchange controversy to boost “high exchange.” The Professor was an ardent supporter of “high exchange,” afterwards adopted, to help primary production, allegedly. The effect was to Increase the farmer’s purchasing power by 25 per cent and his costs by an equal amount. As a means of helping the farmer, the measure was puerile. One can agree with the Professor that now that the people have become used to the existing rate, It will be difficult to alter the rate either way, without hardship. It is possible that the present rate could be maintained, because it is likely that the “free money” to be Issued by the Government to enable primary production to meet New Zealand costs of production, plus a reasonable profit, will in effect gradually absorb our surplus sterling credits, thus benefiting the British manufacturer and the people of New Zealand, so that caution would seem to be the key note. Professor Copland Is apparently delighted with Australia’s recovery! Before me is a summary of Australia’s indebtedness. For the year ended June 30 last, the taxation levied by the Commonwealth and State Governments amounted to £95,177,439, the highest on record. This terrific taxation has been levied on a national income that has been reduced by £IOO,000,000 per annum since the depression. Interest on the Australian national debt ticks up at the rate of i £llO per minute of time, and more than £50,000,000 annually is required I for interest. Sane and sound finance. ! In New South Wales, a single man \on the dole receives the munificent | sum of 5s 2d per week in food coupons, or, barely nine pence per day for food alone, with nothing for clothes or housing. The married man with one or two children, receives 35s per fortnight. Truly Australia has made a wonderful recovery according to orlhordox economists. But ordinary people will say that such conditions as exist in Australia to-day are a disgrace to any country and i the present financial system, of which Professor Copland is such an admirer, stands discredited before the world. Orlhordox economists worship figures. Human happiness or misery, mostly the latter, simply does not enter into their calculations.—l am, etc,. R. G. YOUNG: Gordon ton, January 29.