HIGH EXCHANGE

Evening Post, Volume CXVI, Issue 48, 25 August 1933, Page 8

HIGH EXCHANGE

LABOUR VIEWPOINT

STATED BY MR. HOLLAND

Some of the views of the Labour Party oa the higher exchange question were expounded by the Leader of th» Parliamentary Labour Party, Mr. H. E. Holland, M.P., in an address at Sunnier oa Wednesday evening (reports th« "Press"). — Mr. Holland commented on what h» alleged was a complete change of front by the Prime Minister (the Bt. Hon. G. W. Forbes) on the pegged exchange. Time, and again Mr. Forbes had reiterated that it was not the function of the Government to fix the exchange rate, and that the banks would have to carry the responsibility. On November 16, and again on November 19, of 1932, Mr. Forbes emphasised that the matter was entirely one for th« banks, said Mr. Holland. Yet two months later Mr. Forbes executed an entire somersault and his somersault was followed by a. complete one on tba part of all the banks. "It seems that there is only one possible explanation for the action of th« Prime Minister," said Mr. Holland, "When he capitulated he did so because he had made the discovery that the Befonn 'cave' in the Cabinet had reached such dimensions as to enable it to turn the Government out of office, ■In giving way the banks took the precaution of getting a- written guarantee of indemnity in the loss on tho exchange transactions with London. I have no doubt that the rate was pegged up afc the dictation of the- big lanaholders in the Cabinet. While we know that some have benefited from the higher exchange, we know that it has brought no volume of new money into New Zealand; in fact, I think that no new money has come iv. We have debased our own currency to the extent of 25 per cent,, against the English currency, and our own purchasing power is restricted accordingly. I venture to say that not more than 25 per cent, or! the farmers in New Zealand have received any benefit from the higher rate of exchange. And that benefit has to be met by the people of New Zealand. At the end of the year we : will bo £8,000,000 behind on the cost of exchange alone, and to meet that the Government has imposed the sales tax, the petrol tax, and taxes on sugar, tobacco, and such things. That tar money nomes from the pockets of the people."

Mi-. C. I-T. Andrews was re-elected chairman of tli'o New Zealand Dairy Produco Exporters' Association, Itch, at. the annual meeting of the assoela? tion held in Wellington yesterday. :