EXCHANGE RATE.

Press, Volume LXVIII, Issue 20711, 23 November 1932, Page 15

EXCHANGE RATE.

- ■—-- ♦- COALITION OPPONENTS. j PROTEST NOT YET MAttK TO CABINET. i lEhou Uuk PAitLiAMKNtAHir .liwoirn.n.'] WELLINGTON. Novembor 2'J. 'The urban members of the Coalition ] iv ho aTo opposed to tlio proposal to peg the exchange rate at "5 per cent, above parity have not yet made any move as a body to place their protests before Cabinet, although individual members have stated their viows to. the Prime Minister (the Kt. Hon. G. W. Forbes). One or two members opposing the agitation by the rural section of the Party are absent from Wellington at the moment, so any action in the wuy or! arranging counter-representations to Cabinet are likely to be delayed for a day Or two. One city member in close touch -with the position said this evening that it was possible nothing would bo done in that direction until the return of the Minister for Finance On Thursday. Although the Hon. W. Downic Stewart had made it plain on a previous occasion that be was opposed to exchange inilation, tsoiuo members whose attitude was still non-committal desired, to see wJi other the Minister's views had undergone any modification as a result of! the enquiries he has bceu making in London on behalf of the Government. They felt that since it was generally understood that no decision would bo made by the, banks before Friday at the earliest, it might be convenient to defer any further action until Mr Downio Stewart's return. So far as can be gathered the Opposition is anxious to have the proposal for a higher rate brought before the House, and there is a definite feeling iu the lobbies that the Government will give its own members an opportunity to discuss the question rather than it How a discussion to be forced by the Labour Parly. Evidently some members are fairly certain of an early opportunity to state their views, for they aro busily preparing speeches at the present time. Just .what course will be followed to open the debate is not known, but it is thought likely that something will develop during the present week.

Dobato in House Expected. "Uur Action has caused a tremendous sensation,'' said ono of tho prime movers in the agitation for an increased rate, "but it is imperative that something should bo done, and we will have to go on with it." It seemed certain that the matter would come before tho House, ho added, but no matter what arguments might be brought forward against a higher exchange the fact that the producers of the country were in urgent need of assistance would not be altered. A continuation of present conditions would inevitably mean the ruin of a large fection of the farming community, and these wholesale failures would just as inevitably bring about the ruin of mercantile. Arms. The. final result of such a landslide, lie declared, did not bear contemplation. THE PROPOSED INCREASE. COST TO AUCKLAND TRANSPORT BOARD. 'PI'.ESS AHBOCI.VHO&- Tfcl.lKrfl.AM.) AUCKLAND, November 22. Tho chairman of the Transport Board (Mr J. A. C. Allum) euid at a Koard meeting that if tho exchange rate was raised to 25 per cent. —but he could scarcely believe it possible—tho Board would have to pay £20,000 exchange on London interest payments, an increase of £12,000. It would mean that all the good work done in trying to got capital charges reduced would be nullified. Mr H. G. R, Mason, M.P., said he though tho Government should be asked to indemnify local bodies against any increased costs imposed' by a high exchange. Th-j 'Board r-■■solved fo ask the Prime Minister t<- take such action as would avoid placing additional burdens on local bodies. IMPORTERS' VIEW. RESISTANCE TO PEGGED EXCHANGE. At a meeting of the Canterbury Importers' Association, the following resolution was carried:— "That this representative meeting of Canterbury importers strongly protests against the proposal to peg exchange as being inimical to the interests of New Zealand, and supports the recommendation of'the Associated Chambers of Commerce that exchange should he free.''