"TIME NOT RIPE"

Evening Post, Volume CXV, Issue 15, 19 January 1933, Page 10

"TIME NOT RIPE"

NO STATEMENT YET

DEPUTATION TO MR. FORBES

INDEMNITY TO BANKS

In view of the tension existing and the' general public anxiety,-a deputation representing the New Zealand Importers' Federation waited on the Prime Minister yesterday in order, if possible, to obtain some definite statement about the position.

Speaking to a "Post" representative afterwards tho president of the federation, Mr. Edwin Salmond, who with Mr. C. J. B. Norwood and Mr. C. E. Richardson formed the deputation, said that it was put to the. Prime Minister that rumours were- rife that political pressure had been brought to bear on the banks by the Government to induce them to force the exchange rate up to an- artificial level. The Prime Minister was reminded that on at least two occasions he had stated that under no circumstances would political pressure in this ™w,^ oa fee exerted. He was asked whether the Government had gone back on its word and whether certain weapons had been used to force the banks'

To all questions,", (said Mr. Salmond, 'the answer was returned that the time was not ripe for any stat»ment as to what Cabinet had done or intended doing. We were told we must wait until an official statement is ready."

The Prime Minister was also asked continued Mr. Salmond, whether there was any truth in the persistent rumour that the banks had been indemnified against any loss following on a nigh exchange level. "To this there was no.reply, but it is significant that it was not denied," added Mr. Salmond.

"We cannot say what that loss will be," commented Mr. Salniond, "but it will probably be of big dimensions, and the people of New Zealand will have to pay. It is obvious that the farmer is not going to benefit by a higher ex-change-rate, although some financial institutions will. TJiat the cities are not indifferent to the farmers? plight is proved by the fact that they, are prepared to back a scheme of subsidising the-farmer which would preserve farming as a national asset and maintain producing capacity. A high exchange rate, however, is not going to do that."