EXCHANGE PROBLEM.

Hawera Star, Volume XLVIII, 28 November 1924, Page 5

EXCHANGE PROBLEM.

APPEAL TO PATRIOTISM. (BY TELEGRAPH—PPESS ASSOCIATION. WELLINGTON, Nov. 27. Mr. T. M.- Wilfo-rd (Leader of the Opposition) says a suggestion has been put forward by Mr W. Mcßae, formermanager of the Bank of New Sbuth W ales in Sydney, for overcoming the exchange difficulty. Mr. Mcßae considers that none of the proposals mooted so far really meets the ease, and this in Ms own scheme, devised in the first instance for Australia, but applicable to New Zealand as well. He says the wool, Avheat, sugar and metal industries of Australia, will show net profits of well over £12,500,000 during the next five months. He advocates the repayment of £5,000.Q00 per month for the next five months, or a total of £25,000.000. London' funds are at a discount of, say, 4 per cent., so if the loans were issued at, say,- £96, the proceeds of each £96 would pay off £IOO in London. He believes an appeal to the country’s patriotism would not prove disappointing, and that it would pay farmers and all concerned to subscribe to the loan as a. solution of the present difficulties. This would at once create better local markets and the resulting benefits would be immediate.

Bonds purchased at, say ,£96 and 6 per cent, could be liquidated in Australia if necessary at little or no’ loss, and the loss, if any, would be covered by the gain. There would he no increase in the total debt, for the loan there would liquidate the one in London. Apart from the local benefits gained the country would gain kudos in London through the moral effect of such repayment. He also suggests the release of additional notes, after consultation with the hanks, without any set date of repayments, and advocates a reduction of the accumulations in the London funds by the repayment of £25.000,000 at the rate of £5.600.000 per month for five months. Tin's proposal has already been ventilated in the Press and so far has received no adverse comment. ,