CAUCUS VIEWS

Dominion, Volume 26, Issue 103, 25 January 1933, Page 10

CAUCUS VIEWS

Discussion on Exchange MAJORITY APPROVE / Coalition in Conference TO BE RESUMED TO-DAY (By Our Parliamentary Representative) The attitude of the 51 United and Reform members of the Coalition toward the increase in the exchange rate and other important aspects of the Government’s latest pol * c L p tl ”’ posals, will be clearly defined by the time Parliament reassembles tomorrow afternoon. . Five and a-half hours were spent in caucus yestei ffZAhe sole topic under discussion being the exchange ra » and the meeting wifil be resumed to-day the leaders of fee Government expressed their «°mi dence last evening that the exch ’ , ‘| policy would be endorsed by a large majority. ' Although much has been made in many quarters of recent political events, and the decision to exchange rate up to 2j per cent., on noticeable fact that emerged fromi yes terday’s caucus was that members of the Government themselves are regarding the situation with greater equanimity than might have been expected from the critical outbursts which have occurred during the past week. Real differences of opinion were expressed, one or two members voicing open hostility to the Government’s move, but it was generally agreed that even some of those who actually oppose the high exchange rate in principle might not be prepared to carry their opposition so far as to break with the party. Three Absentees from Caucus. There were only three absentees from yesterday’s meeting, these being Mr. A. JI. Samuel (Thames), Mr. A. J. Stallworthy (Eden), and Mr. Tau Ilenare (Northern Maori). Both Mr. Samuel and Mr. Stallworthy, who were still in Auckland yesterday, were absent from the last caucus of Government members, and it is known they are at variance with the Government on certain questions, so that their absence might be significant of their ,future attitude. Mr. R. A. Wright (Wellington Suburbs) has already said, he will vote against the high exchange proposal, but he was present yesterday. Mr. Henare was unable to reach Wellington in time for the meeting. Those at the caucus found so much to say on the exchange question that it was still being debated at the end of the day, and it was decided to resume again this morning, so that the other aspects of the Cabinet’s policy might be made known and explained. The three principal speakers yesterday were the Prime Minister, Rt. Hon. G. W. Forbes, the new Jfinister of Finance, Rt. Hon. J. G. Coates, and the ex-Minister of Finance, Hon. W. Downie Stewart. 'The Prime Minister and Mr. Coates summarised the reasons which led to the exchange rate being raised, and Mr. Stewart, Us was expected, explained.the events leading up to his resignation and his views on the exchange question. He received a most cordial welcome from all members on his arrival at the caucus room, and from what was said at the gathering, it is understood it was made quite clear that Mr. Stewart would continue to give general support to the Government, even although he might differ from its decisions on certain,points. • Prospective Opponents. 1 It is fully expected in Government quarters that both Mr. Stallworthy and Mr. Wright will vote against the Government on the Bill to indemnify the banks against any losses occurring through the purchase.of exchange at the higher rate. These two and four others, Mr. W. A., Bodkin, Mr, W. A. Veitch, Mr. A. Harris,‘and Mr. H. Holland, recently signed a memorial opposing .the high exchange, but it cannot be said with any certainty that they will go to the length of voting against the Government on such a vital policy question. Seen after the caucus last evening, .Mr. Forbes said the exchange question had been discussed dispassionately all day. He expressed his satisfaction with the generally helpful attitude members had adopted, repeating that there was no danger of the Government failing to retain a substantial majority. The real test of members’ opinions on the exchange question will occur when the Bill indemnifying the banks is before the House.. When asked what attitude would, be adopted toward any Coalition members who voted against the Government, Mr. Forbes said this measure being one embodying vital Government policy, anyone who voted against the Government would be expressing no confidence in it. He said he had' received no intimation that the Leader of the Opposition would move a straight-out no-confidence motion in the Government when the House reassembled, but he assumed that some such move would be made. Work For Parliament. Discussing the session’s work, the Prime Minister said the House would pay tribute to two former members of the Legislature, Mr. H. L. Tapley and Mr. .1. Horn, to-morrow afternoon, then adjourning until the evening, when he would make a policy statement outlining the Government’s intentions regarding economic readjustment and what it was proposed to do for the remainder of the session. Mr. Forbes said final decisions had yet to be made on one or two important policy points, but these should be reached early next week. He was not certain at the moment what legislation would be involved in giving effect to the Government’s programme, but in the meantime there were several Bills on the Order Paper which could be taken a stage further, the Reserve Bank Bill being one. It was not desired to keep members in Wellington any longer than possible, and no doubt some of the 15 Bills which had already been introduced this session would be dropped, although which ones would not be taken further had not been decided.