CHANGE OF FRONT

Evening Post, Volume CXVI, Issue 84, 6 October 1933, Page 8

CHANGE OF FRONT

EXCHANGE STATEMENTS

MR. FORBES TWITTED

"QUICKEST SOMERSAULT"

Pointed reference to the Prime Minister's chango of attitude over the exchange rate was made by Mr. H. G. B. Mason (Labour, Auckland Suburbs) in tho course of his speech in the Ad-drcss-in-Reply debate in the House of Representatives today. Mr. Mason quoted previous statements made by Mr. Forbes on the exchange question, and added that the Prime Minister had made tho quickest somersault iv the history of New Zealand politics. Mr. Mason said that the Prime Minister had completely changed his opinion on the exchange issue. In his Budget of 1931 he had stated: — There is no doubt that the high rates of exchange and especially the uncertainty as to the future movements in the rates are a considerable factor in tho business stagnation that prevails, further, the exchange rates have seriously affected our credit abroad, increased the cost of new borrowing, added a further 10 per cent, to the weight of interest payments abroad, and prevented prices and the cost of living falling as much as they otherwise would have done. It is true that exporters are receiving an exchange bonus of approximately 10 per cent., but it is not very long before any temporary advantage obtained thereby is cancelled out in tho higher rates and taxes, higher cost of goods, and the general reaction from slackness of trade. Mr. Mason said that had boon the considered opinion of the Prime Minister, but today when members were making similar statements they were being told that they had every motive in th,e world but the right one, and that they were lacking in sincerity. Mr.- Forbes had plainly, stated that the high exchange rate was injurious to New Zealand's credit abroad. ANOTHER STATEMENT. At the end of last year the Prime Minister had stated, in reply to a deputation:— As I have said before, tho question of exchange is a matter for the banks. I think that tho proper course would hare- been to havo waited on the banks. It is not tiie intention of the Government to interfere with the exchange. If the banks consider that in the interests of the community and their customers that a high rate of exchange is necessary, then the Government will have to put up with the increased tax. The Primo Minister: had posed as a bold, heroic, • and . unselfish gentleman, and one wondered what had induced him to alter his opinion on the exchange issue. The reason had been that he had gone round the country saying that the position was serious, and ho had been. told by his friends, that he would not be able to retain office if ho did not change his opinion. When . the pistol had been held at his head, he had changed his attitude in order to ensure comfortablo occupancy of tho Treasury benches. It had been tho quickest somersault in the history of New Zealand politics, and quicker than any somersault that the Prime Minister had ever made on the football field. One.would have been content to overlook this somesault. if. tho Primp Minister did not-adopt a bold, heroic, and. nnselfish attitude, and did not make' the claim, that his policy was in. the iiiterests of the welfare of the people. :" Mr.,Forbes had' stated-that the members of the Labour Party were bound to a set policy, and he had pitied them in their lack of independence. One took from.his remarks that he encouraged' independence ' within his own party, but when a member of the Coalition adopted an ; independent attitude, the Prime Minister: adopted a .difforent attitude. Here was another matter in which Mr. Forbes, had shown a swift somersault.