EXCHANGE RATE

Evening Post, Volume CXVI, Issue 102, 27 October 1933, Page 8

EXCHANGE RATE

ALTERATION QUESTION

ALLAYING UNCERTAINTY

Before the meeting of the Dominion executive of the New Zealand Farmers' Union concluded yesterday afternoon further consideration was given to the North Canterbury remit suggesting that, in order :to allay uncertainty as to how and when the present exchange arrangements, would bo altered, a definite systembe devised and embodied in an act of. Parliament. Some referenco was made in yesterday's "Post" to this remit, which followed another North Canterbury remit, passed by the executive, supporting the Government in maintaining" the- pegged exchango rate as long as conditions remain as at present. Mr. W. Mulholland (Canterbury) said he found now among the commercial fraternity that the agitation and soreness in regard to exchange had died down very considerably, but there was a certain amount of uneasiness in caso the exchange might be suddenly lifted, tho view being that it would cause chaos in trading circles and,'indeed, wojjld be a very serious matter for the whole country. He thought tho Government should make some pronouncement upon the point.' SOME SUGGESTIONS. For discussion the following suggestions wero made: — (1) That all alterations take effect in August of any year; (2) that the reduction to bo made in the rate be determined by tho export price index for six months preceding August in each year; (3) that tho.present rate be made permanent by legally defining the relation of tho New Zealand pound to sterling. Mr. Mulholland added that the sooner the thing was put on a definito basis the better it would be for everybody. Mr. 11. Morrison (Wairarapa) suggested that the matter largely depended upon the attitude of New Zealand's competitors. Australia, for example, should not have twenty-five yards start in; a hundred. He thought the question should bo deferred. A similar view was expressed by Mr. F. Waite (Balclutha). Mr. L. Hammond (Wellington) suggested that North Canterbury should withdraw the remit in view of the fact that tho other resolution had been passed. On tho remit being put to the meeting it was declared lost.