FREE EXCHANGE

Hokitika Guardian, 20 February 1932, Page 5

FREE EXCHANGE

COMMERCE CHAMBERS’ URGE

THE POSITION OUTLINED.

fßy Telegraph—Per Press Association) WELL NCxTON, Feb. 19,

Remarking that some misconceptions apenr to have been circulated from some quarter, Mr ,J. B. Norwood, President of the Wellington Chamber of Commerce, to-dav stated ;—“The Chambers of 'Commerce have ever been consistent in their objections to Slate o» local body interference with private enterprise and ordinary trading, and the extreme step of wli-at might be termed a commandeer of the whole coutnrv's export production for protecting the Dominion’s credit to the extent of some fourteen millions was one that has appeared -somewhat drastic and, while fully supporting that the Dominion's credit must be kept unblemished, nevertheless this does -not dispose of the coni ention that other steps might have been followed to achieve the same end. Definite expressions of opinions have been made by representatives of the Hanks that the position is such as not to warrant any increase above the- present rate of .10 per cent.”

‘‘Contemporaneously with the repre--entatioiis that have been made from the Chambers of Commerce against any artificial fixing of the exchange rates, and .against 'the closing of the market for Exchanges, there has been controversy from other sources in advocacy of a pegged high exchange rate. Many advocates cf this latter confuse, as being synonymous terms, the question of (a) free exchange, and (b) the rate, say, 25 per cent, or 37 per cent.

“The persistent propaganda in th s direction has no conection with the steps taken by the Chambers of Commerce to endeavour to have cleared up matters arising out of the Credits Pool and the fixing of a non-competitive rate of exchange, and the Chambers ot Commerce still stand for the principle of non-interference from the Government, and they are definitely against any artificial pegging of the exchange rates.”

A NELSON OPINION. NELSON, Feb. 19

The Nelson 'City Council has passed a resolution that, in its opinion, any artificial fixing by the ‘Government of the exchange rate would be detrimental to the interests of ,the Council, and of the Government, and also inimical to the welfare of the Dominion as a whole.