FOREIGN EXCHANGE

Rotorua Morning Post, Volume 1, Issue 121, 14 January 1932, Page 5

FOREIGN EXCHANGE

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' WELLINGTON, Wednes. The removal of the restriction upon the exchange rates, which, - it was contended, was being attended with disastrous results to the farmers of New Zealand, was sought by a large deputation fully representative of New Zealand primary producing industry, which _waited upon the Prime Minister> the Rt. Hon. G. W. Forbes, and all members of Cabinet to-day. It was contended that the exchange Yates should be allowed to find their Own level without restrictions as were stated to exist under the Government •Exchange Credits Board receiitly established. All the speakers made particular f ef erence t'o the plight of the primary producers and it was urged that if the exchange rates were freed, they would raise from l'O per cent. to about 30 p'er cent., thus making the farmers a retfifn for their poduce comparabl'e to that being received by competitors overseas operating on high exchange rates. The argument was' advanced that Newr Zealand should set about ecor noniic rehabiiitation as Australia had done with a high rate of exchange, and it was asserted that this \Yas the only way out of the present difficulties. Full consideration of the whole question was given early in the day by representatives of the Wheat Board, the Dairy Board, the Fruit .tontrol Board, the Sheepowners' Federation and the Farmers' Union. The deputation waited upon Cabinet at the conclusion of a lengthy conference. In his reply, the Prime Minister promised that full consideration would De given to the question, although he pointed out that great difficulties would be presented by an increased exchange rate. He was favourable to a suggestion that "a conference should be called between th'e Government, the banks and the primary producers, and it was likely that this course would he adopted. It was announced later that Messrs D. Jones, A. W. Irons, H. P. Acland and W. D. Hunt Rave been app'ointed to represent the producers on any committee set up to investigate the question.