FACTS PRIVATE—COSTS PUBLIC

Evening Post, Volume CXVI, Issue 95, 19 October 1933, Page 12

FACTS PRIVATE—COSTS PUBLIC

. We have no expectation of inducing the Government to reconsider its exchange policy. The obedience of its majority to the party whip has evidently convinced the Coalition that it is supported by the country. It is necessary, however, to enter a formal protest against the attitude adopted as disclosed in Ministerial answers to questions yesterday. The Minister of finance gave a "direct reply to Mr. Stall worthy's, question whether a definite arrangement, had been made with financial institutions not to reduce exchange,. until the close, of the export season. No such arrangement, he said, had been made. But the Prime Minister declined all information concerning the ; agreement With the banks under the Banks Indemnity Act. ' ~. ' : ■'■>' It is not usual, he' said, to publish details of the working: arrangements or agreements made by the Government, in respect to its banking business, and this rule applies to the agreement made with, the Associated Banks under the authority of the Banks Indemnity (Exchange) Act, 1932-33.' ■ We should be interested to hear the authority for the assertion that the Government's banking arrangements are private. - If there is any such rule it is time it was reconsidered, especially when it is made to cover extraordinary transactions such as those involved in the high' exchange guarantee. It has been publicly stated that the bank discount rate on Treasury bills in New Zealand was £5 8s 9d, now reduced to £5, but no details have been given to the public. If it is now contended that the Government's dealings with the banks on this issue are strictly private and that the public are concerned only in paying the account and must ask no questions, the principle is, to say the least, most pernicious. I