PEGGED EXCHANGE

Evening Star, Issue 21317, 23 January 1933, Page 8

PEGGED EXCHANGE

ALTERNATIVE TO WAGE GUTS BANK OVERDRAFT REDUCTION DENIED [From Our Parliamentary Reporter.] WELLINGTON, January 23. The announcement that no further reductions in the wages of public servants would be enforced by the Government was made by Air Forbes in reply to a question to-day. _ That the raising of exchange was the alternative to wage and salary “ cuts,” and had prevented the necessity of the carrying out of a policy of further deflation, Air Forbes indicated, although not disposed to discuss the question at length. The report that the banks had agreed as a result of negotiations with the Government, to reduce the bank overdraft rates from 6 per cent, to 5 per cent., was not confirmed by Air Forbes to-day. “I know nothing of the matter,” he said. “It is pure speculation.” “A GRAVE RESPONSIBILITY” HASTINGS, January 2|. At a largely-attended meeting of business men in Hastings this morning a resolution expressing disapproval of the Government’s action in raising the rate of exchange was unanimously carried. The following was the chief ground of objectionHop© for the restoration of the prices of primary products is centred in the coming International Economic Conference. One means of accomplishing that purpose is stated to be the restoration of stable currencies and exchange. It is a grave responsibility for the dominion to embark on a policy which is in direct negation to the negotiations now opening between the nations.” The resolution expresses regret at the Government’s sudden change of policy, and appeals to it to take all possible steps to free exchange, allowing the London rate to follow the natural course. ___