NOTES OF THE DAY

Dominion, Volume 26, Issue 49, 21 November 1932, Page 8

NOTES OF THE DAY

Assent can readily be given to the Prime Minister’s proposition that “the question of the exchange rate is entirely one for the banks,” so long as it is answered purely on banking principles. When, however, political pressure intrudes, and the proposal is to vary the rate, arbitrarily and artificially, no Government should stand aside. In any case the banks should not accept such a responsibility. It is not their business and, if we are not mistaken, they know it. They are keeping within their legitimate functions when they fix a rate based on supply and demand. When it is proposed to depart from that practice, the question becomes one of national policy. The proposal is to vary deliberately the value of the currency by means of which everyone buys and sells, pays or is paid. If the banks of their own motion proposed to manipulate that currency, there would be a universal outcry. Such a decision should be made by the Government without any attempt to shift the onus.

Industrial uncertainty is one factor impeding the freer flow of business. It is therefore gratifying to learn that a settlement has been reached between employers and employees on the waterfront. Thus qne more major dispute has yielded to negotiation. Labour conditions in two or three key industries have still to be agreed upon and it may be hoped that satisfactory settlements may not be long deferred. The freezing workers’ dispute is the chief one of immediate moment. What the workers should realise is the ruinous condition of the meat industry. Unless the farmers can secure a larger net return from their product, many will be unable to carry on. Their failure must affect the freezing workers. The latter are asked to share in the reduced returns brought about by the fall in prices, but a reduction far less in proportion than that forced upon the farmer. Their interest is essentially the same as the farmers’. In helping to restore the latter’s industry to an economic basis, the freezing workers would be helping themselves. In any case they should be aware that New Zealand cannot in these critical times allow a key industry to be held up indefinitely. *** ■ •

Although the session is supposed to be nearing the end, a good deal of uncertainty still exists as to what Parliament will be asked to do in the final weeks. Two important measures are still pending, the Superannuation Funds Bill and the Central Banking Bill. Ihe present intention appears to be to go on with the former although, for a number of reasons, its postponement seemed certain until two or three days ago. Due weight must be given, of course, to the point already emphasised in this column that postponement would leave superannuitants and contributors in an unpleasant state of uncertainty as to present and future incomes respectively. At the same time it would be far better for all concerned to suffer delay until next year in order to get a good Act rather than a patchwork. The Select Committee has still to hear ‘and digest much evidence and consider how the Bill will be affected. That task should not be rushed nor should there be any attempt to hurry the Bill through the Parliamentary stages. Everyone wants a sound and lasting job this time, with no cause left for further tinkering.

Final returns of the Congressional elections in the United States confirm the decisiveness of the Democrats’ victory. When Mr. Franklin Roosevelt takes office as President next March, he will be in the fortunate position of possessing overwhelming majorities in both Chambers of the Legislature. That fact should clear his way if he brings a definite line of policy to the White House and if he can dominate his own party. But if he has a wonderful opportunity, his is also a heavy responsibility. He cannot plead the excuse of a mutinous Congress except to confess his own failure as a political or, more narrowly, as a party manager. The current serves and it is for him to take it. What the United States wants to-day—and the world no less—is leadership. Men’s minds are in a state of confusion, they do not know which way to turn or, if they have an opinion, they shrink from backing it. In Great Britain the national spirit has been stimulated by the capacity of the Government to take decisions and act on them and the same result may be expected if Mr. Roosevelt gives the United States a strong Executive., The benefit will be both national and international.