DUNEDIN OPINIONS.

Auckland Star, Volume LXIV, Issue 18, 23 January 1933, Page 7

DUNEDIN OPINIONS.

MR. FORBES' VOLTE FACE. EXPLANATIONS WANTED. (By Telegraph.—Special to "Star.") DUNEDIN, this day. The "Otago Daily Times" says: "The decision of the Government to raise the rate of exchange lias met with a chorus of condemnation from the business interests of the Dominion, nor will the belief expressed on their behalf that the Government has committed a profound mistake in ignoring the counsels of the banking authorities on the subject be weakened by consideration of the explanations of the decision authoritatively offered. "The Prime Minister has claimed that the Government's action is justified by reason of the sad plight of large numbers of our citizens. It is only justifiable on this ground if it will actually have tho effect of definitely affording relief to those in need of help. The recent statement by Mr. Forbes contradicts flatly that which lie made in his Budget speech in 1931. The Prime Minister has achieved a complete volte face. Possibly he has allowed himself to be influenced by reasoning of the kind employed by Mr. Coates, who is now in control of public finances." T-lie "Dunedin Star" says: "So far at least as the citics are concerned it cannot be said that the reception of the Government's decision for the artificial raising of the exchange rate has been such as to clieer. it on its difficult path. The voices that find in it anything but a cause for misgiving have been few and far between. The sober statement of Mr. Coates in explanation of the decision does not suggest that the Government is happy about it. Nothing is said about the bearing of the new rate on the agreements of Ottawa, and that aspect should have been foremost in the mind of Mr. Coates, who was •this country's chicf delegate to the Empire Conference."