EXCHANGE RISE

Rotorua Morning Post, Volume 2, Issue 443, 30 January 1933, Page 4

EXCHANGE RISE

approval e>cpressj support for recent incrpd by prominent 1 farmer 1 PRODUCER BEREFI Opotird, iaSt nil Interviewed by "The Morning P J Saturday regarding the exckl question, Hon. J. B. Gow, ex-MjJ prominent dairy farmer of tlie h of Plenty, expfessed himself as in favour of the Government's' ad in increasing the rate to 25 per ,1 Mr. Gow state^ that he felt M fied that the primary producers wJI materially from the incre® in fact already better offers had fl made for dairy produce at the « tories and a marked increase ■ taken place in the open markets 1 stoek. m Mr. Gow recalled that in timJ the Governments of the m gerent nations had been compellefl extend their credit resources and cfl them through a time of stress. T0S the nations were facing econ"8 stress such as was never before 9 templated even. in wartime. The« tions were obliged to strain M and wherever and whenever fl sible to expand the medium of ■ change so that the storm niayl safely weathered. a A manifestation of this occuiS when Britain went off the gold st j ard and the exchange increase inw Zealand can be placed in the sfl category. It will provide more fua from which internal debts niay« paid and generally ease the situatl Gow stated that he was byl meahs an inflatiorl ,-advocate bufl must be realised that the plighfl the primary produeer was despej and the Government was certa® justified in taking some meansB increasing his revenue so thatfl might meet his pressing obligatM 'This could be done in two ways, eifl hy the judicious note issue or byB change manipulation. The latter fl to he preferred for the reason m its effects were immediate. a Commercial Agitation I Mr. Gow stated that much agital was being worked up by\ comtaefl interests against the rise in exch'aa but it would he found that it wa be beneficial in other ways hesa helping the primary produeer. I For instance, it would he noa vide a report in the "Morning Pa that already, a revival had taken pB in the timber trade between New M land and Australia. This had at 1 time been a source of considetfl revenue to New Zealand but hadl come a dead' letter when the Ausl lian'pound lagged behind thatofM Zealand. The resumption of trade ■ that the two countries' currenl were on a parity, would provide™ for some 2000 to 3000 men and 9 in itself would be a hig factoa stimulating internal industry. i Effect on Touristi Trade There was also much to be ga: from the tourist industry for I Zealand, if Australian, English American tourists took advantagi the favourable terms offeringfort money in this country. "In general," stated Mr. Gow, 1 Government's action will be welco hy the primary produeer and all depend upon him the only quarr have with the step is that it was taken earlier."