Parliament and the Exchange

Press, Volume LXIX, Issue 20979, 6 October 1933, Page 10

Parliament and the Exchange

The defeat, by substantial majorities, of the two amendments to the Address-in-Reply challenging the Government's exchange policy should do much to clear the political atmosphere both in the House and in the country. The two divisions, and the debate which preceded them, showed quite clearly that there is less opposition to the high exchange, and for that matter less interest in the exchange question generally, than there was at the beginning of the year. Moreover, the attitude of Parliament fairly reflects the attitude of the country. The forced denunciations of the high exchange by Labour members have aroused little interest, even in the city electorates. The reason is obvious. Despite the wild assertions of the leader of the Opposition, the high exchange has had none of the bad effects prophesied earlier in year by the opponents of the Government. It has not raised the cost of living and it has not decreased customs revenue; on the other hand it has helped the farming industry over one of the most difficult periods in its history. From the economic point of view the relegation of the exchange issue to the background is all to the good, since it will set at rest the rumours that a lowering of the rate is imminent, rumours which have done much to unsettle the business of the country. The Government has indicated in the plainest language that it will not alter the rate in the present year; and it is now certain that political pressure will not induce it to change its mind. The Government would perhaps be wise to state equally plainly that when it docs alter the exchange it will do so gradually, with as little disturbance of the economic life of the country as possible.