EXCHANGE RATE

Hokitika Guardian, 14 January 1932, Page 2

EXCHANGE RATE

REMOVAL OF RESTRICTIONS. DEMAND BY EXPORTERS. ;By Telegraph—Per Press Association, WELLINGTON, January 13. The removal of the restrictions upon the exchange rates, which, it was contended were being hampered with disastrous results to the tanners of New Zealand, was sought by a large deputation fully representative of the New Zealand primary producing industries, which waited on the Prime Munster and all the members of the Cabinet toda£ W as contended that the exchange rates should be allowed to find their own level, without any such restrictions as were stated to exist under the Government’s Exchange Credits 800 l recently established. All of the speakers made particular reference to the plight of the primary .producers, and it "'as urged that, U the exchange rate were freed, it would rise from ten per cent, to about 30 per cent, and would thus he giving to farmers a return for their produce that would be comparable to that- being received by their eompetitoi s occiseas, who were operating on higher exchange rates. The argument was advanced that New Zealand could set about its economic rehabilitation just as Australia had done with high rates of exchange, and it was asserted that this was the only way out of the present difficulties.

Full consideration to the whole question had been given earlier in the day by representatives of the New Zealand Meat Producers’ Board, the Dairy Producers’ Export Board. the Fruit Control Board, the Sheepowners' Federation and the Farmers’ Union, ami the deputation waited upon the Cabinet at the conclusion of a lengthy conference. In bis reply, the Prime Minister promised that full consideration would he given to the question, although he pointed out that great difficulties would ho presented by increases in the exchange rate. He was lavourable to the suggestion that a conference should be called between the Government, the hanks and the primary producers, and it is likely that this course will he adopted. it was announced later that Messrs I). Jones, W. A. loins, H. D. Aclancl, and W. 1). Hunt, had been appointed lo represent the primary producers on any Committee set up to investigate the question.