EXCHANGE RATE
RISE DEFENDED BY CHAIRMAN OF DAIRY BOARD. .(Per Press Association, Copyright). WELLINGTON, September 19. Interesting comment on New Zealand’s action in raising the exchange rate was made to-day by Mr W. A. loins, chairman of the New Zealand Dairy Board, who returned from London yesterday. “Much Las been stated here that the rise in the exchange rate had been responsible for the idea of the British Cabinet in asking New Zealand to accept the restriction qn the export of New Zealand dairy produce,” said Mr lorns. “That is absolutely contrary to fact. Not at any time during the discussions on the proposed restrictions did the; British Cabinet take any exception to the liaising of the exchange rate.”
He said that it was interesting to he told by several of the London general managers of New Zealand trading hanks that New Zealand had no option hut to raise the exchange rate, as England and Australia had altered the value of their currency, to assist the country generally. One man had stated that ho was surprised New Zealand had not raised tho exchange rate 12 to 18 months previously. Mr lorns continued: “These statements were not made to me by anyone connected with the Australian IBank that advocated tho raising of the exchange rate”
He staid that, in discussing the position with many large British exporters, they had expressed the opinion that the depreciation of the English pound had materially assisted them, and that no exception could be taken to New Zealand doing likewise. “I am sorry,” he said, “this controversy over the exchange rate has not abated, and it certainly is injuring our import trade by suggestions put about that there were going to be early alterations in exchange date. On several occasions' it was pointed out to me by British exporters that requests had been: sent from New. Zealand to them to forward protests against the rise in the exchange rate in New Zealand, but they pointed out how ridiculous it would be for them to do so when much benefit had accrued to their export trade by England depreciating her currency.”
REDUCTION IS NOT PROPOSED
HON. G. W. FORBES’ STATEMENT
WELLINGTON, Septemebr 18.
Tlie Rt. Hon. G. W. Forbes, in the course of an interview to-day, stated quite definitely: “There is no intention to reduce the exchange, and' that view was endorsed by people with whom ' T discussed the position in England.” Mr Forbes said that the general view taken at Home was that considering the seriousness of the'"Dominion’s international position, the action taken was very moderate in ,pegging New Zealand exchange up to 25 per cent. He added: "During my visit to England I was asked questions as to.what was the intention of the Government regarding the exchange rate; I told them the Government had acted as it had done in order to restore equilibrium for farming or exporting industries, and that there would be a gradual reduction in the exchange, as the beneficial effects of the Government’s policv were felt. I discussed this question with bankers at Home, and they said to me,' ‘Don’t be in a hurry to bring it down.’ ” Mr Forbes said: “We did not know what as going to happen in regard to currency question? yet. It had been freely prophesied by economists at Home and elsewhere, that the gol countries would not be able to remain on the gold standard. Tbe whole question of exchanges and currencies was still in a state of flux. Nobody knew yet where the dollar was going to.”
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Hokitika Guardian, 19 September 1933, Page 5
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593EXCHANGE RATE Hokitika Guardian, 19 September 1933, Page 5
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