Exchange Lift Seen As An Appeal To Urban Vote

Chronicle (Levin), 31 August 1948, Page 5

Exchange Lift Seen As An Appeal To Urban Vote

(N.Z.P.A.—

-Reuter.

Copyright)

Received Monday, 7 p.m. LONDON, August 30. Coimuenting on New Zealand's excluinge poliey, The Keonomist says second thoughLs on the decision oi' New Zealand to bi-ing its pouud ii]) lo parity willi sterling, still leaves a good deal of uncertainty on the motives for this sudden move. Later iuformation does not alter the first impression that this was essentially a -unilateralj

act which liaci not been 'preceded by the usual consultation with Britain or with Australia, the eonntries most directly affected by the decision. A few individnals in Britain and t Australia knew that the question of the revaluation of the New Zealand | pound was under serious discussipn hut they apparently knew no more than that. The reasons for the decision appear to be the usual mixture of ee.onomic and politieal arguments. The -Government faees elections

next year and it would profit it nothing to woo the agricultural vote which is lost anyhow. Politically, therefore, the exchange gesture is an appeal to the urban vote. As such it is of considerable importance. Even the farmers will, for a time, be protected from the impact of revaluafion. They have in hand the recent substant.ial increase in priees obtained in the renegotiation of. food contracts with Britain. In addition, the New Zealand Dairy Gom mission has at its disposal a substantial buffer pool accumulated in recent years of agricultural prosperity, and will be able to pay the farmers guaranteed priees for some time to come. The farming eommunity, moreover, is in a favourahle position to withstand a slight breath of adversity. Seldom liave agricultural mortgage. loans been lower and never before have the liquid assets of the farming eommunity heen s,o large,