The Evening Star SATURDAY, JANUARY 21, 1933. SEQUELS.

Evening Star, Issue 21316, 21 January 1933, Page 12

The Evening Star SATURDAY, JANUARY 21, 1933. SEQUELS.

So far at least as tlie cities are concerned, it cannot be said that the reception of the Government’s decision for the artificial raising of the exchange rate has been such as to cheer it on its difficult path. Voices that find in it anything but cause for misgiving have been so far few and far between. The sober statement of Mr Coates, following that of Mr Forbes, in explanation of the decision, does not suggest that the Government is happy about it. Ministers admit the disadvantages of the plan, but hope that, as time goes on, they will be increasingly outweighed by its advantages. It is expected that, with more money in the country, a stimulus will be given to industry, and the Government and local bodies assisted, after first difficulties, in meeting their increased interest indebtedness. It is admitted that the over-riding of the banks would be wrong in normal times, but the excuse is made for it of emergency, which falls short of covering it. Nothing is said about the bearing of the new rate on the agreements of Ottawa, and that aspect should have been foremost in the mind of Mr Coates, who was this country’s chief delegate to the Empire Conference. Presumably some farmers will be gratified by the step which has been taken, and we shall hope that their expectations from it, which have not been extravagant, may bo fulfilled in their entirety. Already it has had its first benefit in the increased prices received at the Auckland wool sales, though it is more satisfactory that wool prices are firming, apart altogether from the exchange rate. There is a case for the Government’s policy, though wo do not think it is a case that should have been decisive. It should not be pleaded, however, as in some quarters has been done, that justification for it exists in the success of exchange manipulation of the same kind in Great Britain and Australia. Great Britain did not go off gold voluntarily, but because she was forced off, and the rate in Australia is a natural rate.

Provisional changes which have been made in the Cabinet as the result of Mr Stewart’s resignation will not bo commended. Mr Coates becomes Minister of Finance, and that appointment probably will be lasting, although others may nob be. Thanks, we must suppose, to the strength of his party, he has been preferred for it to present colleagues, and no new Minister to be appointed after the session will be likely to be vested with those responsibilities for a beginning. They will be new to Mr Coates. We should prefer, and most electors would prefer, we would fancy, irrespective of past party allegiances, that they should have reverted to Mr Forbes, who has been Finance Minister as well as Minister of Customs (which portfolios will again be joined) twice before. Mr Gladstone said • that a Chancellor of the Exchequer was nob worth his salt who did not consider candle ends. Jf that concern for economy in dealing with the nation’s money is right in normal times, it becomes the first necessity in impoverished times. In view of his past record for expenditure it is hard to imagine Mr Coates considering candle ends. Mr Forbes may feel that he has enough of responsibility without shouldering this portfolio, but his newness to it will bo another disadvantage to his colleague. Mr I orbes also was new to it when he first discharged its duties, but the times probably are more difficult now than they were then. With Mr Hamilton’s permanent appointment to the position of Minister of Employment no fault can possibly be found. The statement that the Prime Minister -will, in the meantime, assume the Attorney-Generalship is extraordinary. The Attorney-General s office makes him the head of the New Zealand Bar. Though it is exceedingly rare for him.in this country to represent the Government in the courts, he is traditionally a lawyer, and the legal profession would not be pleased, we take it, to see that office for long filled by one not of their calling. When a tenth Minister is appointed the anomaly will be easy to repair; it might have been avoided by the selection of Sir Apirana Ngata.