STRONG WORDS.

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 8

STRONG WORDS.

" FLAGRANT BREACH." WELLINGTON RESOLUTION. (By Telegraph.—Press Association.) WELLINGTON, this day. At a meeting of the Businessmen's Committee this morning, at which Mr. E. Salmon, president of the Importers' Eederation, presided, a resolution was carried unanimously which says: "The committee regards the Government's decision to impose political control as a deliberate, flagrant breach of confidence recalling that last November, Mr. Forbes reiterated his previous declaration that exchange was a matter solely for the banks, and told a deputation he thought it would have been in the proper place if it had waited upon them. It is this reversal of the Government's previous policy that we regard as a flagrant breach of confidence and public trust. We believe it can only have consequences of the gravest effect to the Dominion as a whole."

Increasing Taxation. Mr. Salmond stated in an interview that the effect of the high exchange on the importer would ,be to increase his costs. The importer would have to increase his selling prices by that increased cost, plus the usual proportion of profit on that cost. The retailer in turn Would pass on the increased cost to the consumer. The effect thus would be that the public would pay the increase for the benefit of the financial institutions. Inevitably, he added, the Government would be faced with increased service for debt charges, estimated round about a' year, which amount it no doubt would ■ endeavour to collect by increasing income tax, which would come out of the pockct of the trading and professional members of the community. It would mean a decrease in the turnover of many businesses, with the result that staffs would have to be reduced. The additional unemployment result would probably mean a further addition to the unemployment tax.