POLICY PLANS

Dominion, Volume 26, Issue 102, 24 January 1933, Page 10

POLICY PLANS

Opinions on Exchange COALITION CAUCUS Mr. Stewart to Attend government majority Parliamentary Representative) ' Political interest at the moment centres upon the caucus of the Reform and United members of the Coalition Government which is to be lield at Parliament House this morning. It is generally expected that the Governments decision to raise the exchange rate to 25 per, cent.'will be endorsed, i>nd is held by members of the Ministry.

One or two Government members arrived in Wellington yesterday, but the m-Horitv will not reach Wellington until this morning. Although the Government’s programme for to the House daring the next few days includes a variety of proposals, it is certain that most attention will be focused on the exchange rate question, especially as it is now definitely known that Cabinet did not consult the members of the Government before decidmg to force the rate up against the wishes of the banks , , . One Minister said yesterday that while the Government had not made up its mind regarding the methods by which it would assist the primary producers manv competing suggestions were naturally advanced. Now, however, that a decision had been made, it was thought it would be * ou ° d tb ? t the rank and file of the party •ircles that there will not be such unanimity as might be ~embers of the Cabinet, and there is ‘.very likelihood that several members will speak frankly at to-days caucus, and that straight-out increase in the exchange rate will be expressed by some. ■ There is little chance of a definite ..reach occurring within the Coalitwn however, for it is admitted by those Government members who have already arrived in Wellington that * genera election is the last thing which the country should have forced upon it at the moment. One member who signed a memorial objecting to the high .ex change rate some weebs , aso ’ r , 1 vesterday that although he did not regret his action,'he was not prepared, to carry his opposition to the point of severing his connection with the Govtoterest ftat the Hon. W. Downie Stewart, who has resigned the tMjrtfolio of Finance, will attend today’s caucus and, with Air. Forbes and Mr. Coates, he is expected to be among the principal speakers at the gathering. This is interpreted in some quarters as showing that although Mr. Stewart cannot subscribe to the Governments exchange inflation policy, he is not prepared to jeopardise its existence in view of the serious position of the national finances and the arduous task which has yet to be performed. The intention when Parliament adjourned nearly seven weeks ago was that the Government should reveal its uolicy to the Coalition caucus two days before the session was resumed. One or two private members have already expressed concern because, it is held, the Cabinet has been making important policy decisions within the past year without consulting its supporters. However, on this occasion it is unlikely that the exchange decision would have been made in advance had not a leakage of information occurred, making it virtually impossible for Cabinet to withhold the fact that Mr. Stewart had resigned. Other Cabinet decisions have likewise been made known within the past few days, and this has resulted in members coming to Wellington ’already in possession of the main points in the Government’s programme which would otherwise have been withheld until they arrived.