BOMB DROPPED.

Auckland Star, Volume LXIV, Issue 17, 21 January 1933, Page 11

BOMB DROPPED.

PROTEST MEETING.

VIGILANCE COMMITTEE.

FORMATION IN AUCKLAND,

A strongly-worded resolution of protest against, the Government's action in raising the rate of exchange to 25 per cent was passed by a largely-attended meeting of business and commercial interests'held in the Chamber of Commerce yesterday afternoon, which also decided to set up a vigilance committee.

The meeting, which was convened by Mr. Hugh Thomson, chairman of the Auckland Importers' Association, was representative, among those present being the Mayor, Mr. G. W. Hutchison, Mr. J. A. C. Allum, chairman of the Transport Board, Mr. W. J. Holdsworth, chairman of the Auckland Power Board, Mr. A. M. Seaman, and members of insurance companies and the legal profession. Mr. Thomson said the meeting was first called to protest against the proposal of the Government, but sin-t then a bomb had been dropped. The new rate of exchange would affect the whole community. Emphatic Condemnation. After condemning the Government's action, the meeting passed the following resolution:— "That this large and influential meeting, fully representative of the commercial and civic interests of Auckland, records its emphatic condemnation t.f the action of the Government in forcing the policy of the banks in the manipulation of exchanges. It considers fixation of exchange rates is. essentially not a political question, but a financial and commercial operation that should be conducted by those business concerns, in particular the banks, possessing the necessary knowledge, experience and organisation.

"Even at this late hour it urges further consideration with a view to cancellation of its arbitrary and unwarranted action, which in the opinion of this meeting must have a devastating effect on most businesses and taxpayers, must reduce city employment to a serious extent, and increase living costs with disastrous effect to the unemployed particularly, results which at best could be but partially anl temporarily offset by any allege-! benefits to the farmers and their mortgagees. Should Be Suspended. "We submit that sufficient importance has not been placed on the opinion o f traders, company managers, financier", and chairmen of local bodies backed by tho opinion of your late Minister o.' Finance and the banks, sober coutis-.I having been unheeded in the turmoil of political clamour. We are convinced tha t the action now taken by the Government is. contrary to the will of the bulk of our people and that its operation should be suspended until tho views of the electors are obtained constitution - ally."

POLITICAL ACTION? FAIR TREATMENT SOUGHT. TRADE DISLOCATION. (By Telegraph.—Press Association.) WELLINGTON, Friday. "The fact that, a section of the community, by extremely debatable methods, can impose its will on every other section is a direct conflict with political and economic principles," said Mr. J. P. Luke, president of the Wellington Chamber of Commerce, when commenting on the exchange issue. "There cannot be any doubt," he added, "that the financial position of the country will not be improved, and the dislocation of trade and commerce will inevitably bring in its train far greater evils than the artificial pegging of exchange attempts to retnedy. "It is high time the commercial and industrial community took drastic action in the only possible way available to it to see that the whole country is adequately and fairly represented in the political arena." BUDGET BURDEN. ADDITIONAL CHARGES. TOTAL OF £3,150,000. (By Telegraph. —Own Correspondent.) WELLINGTON, this day. A revised estimate, based on authoritative data, indicates that the total adverse effect on the Budget through the artificial pegging of the exchange rate at 25 per cent will be represented by £3,150,000. Expenditure on behalf of oversea debt service will be increased by nearly £1,500,000, the anticipated fall in Customs revenue will account for £1,200,000, and contraction on income tax and other revenue items will, it is estimated, total about £400,000. UNDER PRESSURE. NATIONAL 3ANK GIVES WAY. "VERY GRAVE MISTAKE MADE." (By Telegraph.—Press Association.) WELLINGTON, Friday. Referring to the Government's action in raising the exchange rate, Mr. J. • Groee, manager of the National Bank of New Zealand, said:— "The National Bank has been one of the banks most firmly opposed to the raising of the rate of exchange, but we had to give way under pressure from other banks and we were compelled to follow. "The views of the National Bank on the .exchange question are well known. These have undergone no change since the beginning of the movement for raising the rate. I have been against such steps being taken and I have not altered my convictions to that effect. "I believe that a very grave mistake has been made by the Government in forcing the banks into their present position." " 1; . ...