FINANCE MINISTER RESIGNS

Evening Star, Issue 21315, 20 January 1933, Page 7

FINANCE MINISTER RESIGNS

HO PARTY TO INFLATION PREMIER'S TRIBUTE TO MR STEWART The Prime Minister announced last evening that the Hon. W. Downie Stewart had forwarded to him for transmission to the Governor-General his resignation as a member of the Executive Council, and also of the Ministerial portfolios of Finance, Customs, and Attorney-General. The Prime Minister further stated that the resignation, had been duly forwarded to His Excellency. “ I can only say,” said Mr Forbes, “ that I received Mt Stewart’s resignation with the greatest regret. With his formal resignation he sent me a personal letter, a copy of which I am handing to the newspapers for publication. His letter sets out the reasons that have compelled him to Sever his connection with the Government. H© has found' himself unable to concur in the decision on an important matter of policy which his colleagues believe to he in the best interests of the country in the present economic emergency, and, finding;himself in disagreement with the other members of the Government, he has withdrawn from Ministerial office.

“ I should like to say,” continued Mr Forbes, “ that as Prime Minister" I could not have wished for .a more loyal or delightful colleague than Mr Stewart. His attainments and his ability combined with his high personal qualities peculiarly fitted him for a Ministerial position in which ha has rendered signal service to his country, particularly in connection with the negotiation of recent trade - agreement with Canada, and also' at the Imperial . Economic • Conference at Ottawa and his subsequent visit to London. I appreciate the reasons wdijch have brought about his resignation, and, although he is retiring from the Cabinet circle, I shall always value the personal friendship which- has existed between us and which I know will last till' the end of the chapter.” /

MR STEWART’S LETTER

Mr Stewart’s letter reads; My Dear Mr Forbes,— I regret to say that, as I find myself not in accord with’ the proposal of Cabinet to get the banks to raise the exchange rate and to indemnify the banks against any loss they may incur in carrying out this policy, I feel it my duty to resign my portfolios and. to ask to be relieved from office.. I need hardly say that I realise the difficulties with .which the Government is faced, and that it is the duty of each Minister to do In's best to harmonise his view's with those of his colleagues. You may remember that last year I subordinated my views on the question of the statutory reduction in interest and on certain questions of taxation in order to agree on a common policy, but it is nob feasible to repeat‘‘this line of action on so important a question as that of exchange. My continuance in the Ministry would, therefore, be a source of embarrassment, not a help, to the , Government. I desire to express my thanks to you personally and to your colleagues for the generous help and consideration you have always extended to mo during my term of office. I shall he glad if you will agree to make public this letter at the same time as publicity is given to i the decision on the exchange _ question. I shall also be grateful if you can make it convenient to release me without delay, as the near approach, of the session renders it necessary for you to make other arrangements. I do not think there is anything to bo gained ’ by waiting for tlie decision of the Associated Banks, as this may take some days, and it -is, hardly material from my point of view. I enclose for transmission to His Excellency the Governor-General my resignation, and will be obliged if it can be despatched as soon as possible. Assuring you of my continued personal esteem, yours very sincerely,, (Signed) Wu. Dowxie Stewart.

NEW PR&SLEMS INVOLVED

PURCHASE Of SURPLUS Ircss Association—By Telegraph —Copyright, LONDON, January 19. (Received January 19, at 9 p.in.) The ‘ Financial News,’ discussing tha report of Mr Downie Stewart’s resignation. says: “It is significant that all along lie opposed any arbitrary tampering with exchange.' If the Government decides that the rate ought to be raised in order to help the farmers it will find itself faced with many new, and difficult problems. If a change in the rate is imposed on the banks - the Government will find sooner or later that it will be obliged to undertake the purchase from them of any surplus exchange, as did the Commonwealth Bank a year ago.Moreover, the primary producers will only benefit for a time,' as ultimately domestic prices will rise, and, moreover, an increase will be a moral breach of the Ottawa agreements.” '