HIGH EXCHANGE

Hokitika Guardian, 8 December 1932, Page 8

HIGH EXCHANGE

IS NOT THE DESIRED SOLUTION

EXPERIENCE IN AUSTRALIA

WELLINGTON, December 6. Air J. Fletcher, head of the Auckland branch cf the Fletcher Construction Company, who returned to-day flour Australia by the Alarama, was definite in the belief that the high exchange had far from solved Australia 9 farming unemployment problniriSsz’wwMi- Fletcher' considered that the pos fion there Was •' very unhealthy. On the other side of tile picture, he .poke of the wonderful development in the exploitation of the mineral resources of Australia, Slid considered that there was possibly a wide field for such development in Now Zealand.

' Dililding in Australia was at a very low ebb, but Alelbourne presented - a con list with Sydney. Building in Alelbourne appeared to be normal: Several "big buildings were in course of erection, these being chiefly office blocks. Adelaide was in much the same position as Sydney.

Air Fletcher sa.it! tlult the wheatgrowers in South ? Australia, who had di&tussed the problems of protection with linn, admitted candidly that they would be better off with h straight-out bounty than with an exchange premium, on the prices of productsOpinim was widely bold that it would •be l etter if many uneconomical industries w'l'e discontinued altogether, instead of being enabled to exist by protection.

. Air Fletcher was , strongly of the Opinion that the increase in the exchange rate had not been the solution of Australia’s problems, and it certain.y ivoii.d not be any palliative so far is New Zealand was concerned. The position in Australia was probably just as unhealfc! y to-day as probably at any time in tile country’s history, in that the. employment problem was only being met by means which must ultimately be the country’s undoing. ' Speaking of the great activity in .regard to developments for the production of the miner;:l wealth of Australia, Air Fletcher said that the number ot -r-t co emMoved ; was outstanding, a fact that should be an inspiration to new Zealand legislators to apply the same methods to the production of on Ith oil the New* Zealand mineral fields. A special board had been set up in the Commonwealth to sponsor mineral development, aiicl this board >vas applying itself particularly to the brown coal deposits, with a view to the extraction of fuel oils.' ' •