BEHIND SCENES.

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

BEHIND SCENES.

INTENSE ACTIVITY. SECRECY MAINTAINED. DAYS PASS UNEASILY. (By Telegraph.—Special to "Star.") WELLINGTON, this day. The announcement that the rumours regarding the retirement of the Minister of Finance were correct was made under circumstances of unusual interest in the early hours of this morning. Mr. Stewart's letter of resignation _is dated last Saturday. Cabinet's definite decision to request the banks to peg the exchange rate at 25 per cent had been made the day previously, and since that moment there has been a period of intense activity behind the scenes.

Climax Reached; Ministers' hands were forced 'by leakages of information when, to prevent speculation in exchange, it was desirable that complete secrecy should be maintained until the banks had accepted the arrangement. This was evidently not an easy matter to and days passed uneasily with the Prime Minister constantly faced with questions from pressmen which he could not answer. Public expressions of opinion the Finance Minister's reported decision reached a climax yesterday, when Cabinet held a meeting in the evening, every Minister attending except Mr. Stewart, who has been continuing with office business only, and the Hon. A. Hamilton, who was then on his way from Invercargill.

The arrangements with the banker,s had not apparently been sighed and sealed at this point, for, simultaneously with the Cabinet meeting, there was an equally important gathering of representative bank managers in Parliament Building, which lasted until after midnight. Indemnity Signed. Sir Henry Buckleton, general manager of the Bank of New Zealand, Mr. J. T. Grose, general manager of the National Bank of New Zealand, who is also chairman of Associated Banks, and. Mr. W. A. Kiely, general manager of the Union Bank of Australia, were in attendance, and in consultation with Ministers. Mr. J. Christie, Parliamentary law draftsman, was on duty within call of Cabinet. These facts suggest that befo"o the Government's high exchange decision could be announced as an accepted fact, the banking interests required the terms of the Gove'rnment indemnity to be settled in statutory form. It was after 1 a.m. before the Prime Minister was able to release for publication the full official statesmerrts on Mr. Stewart's resignation and the decision regarding the exchange.