ON PARTY LINES

Gisborne Times, Volume LXXIII, Issue 11842, 25 January 1933, Page 5

ON PARTY LINES

■JpemON BANK INDEMNITY Zi' BILL .SEQUEL TO EXCHANGE INCREASE MR FORBES OPTIMISTIC AS TO RESULT THREAT.TO COALITIONISTS (Press Association.* WELLINGTON, Jan. 24, The caucus of tho Coalition Partyspent all morning discussing the Government’s decision to raise tho exchange rate, and wa s addressed by tho Hon. G. W. Forbes, the Hon. J. G. Coates, and tho Hon. W. Downie Stewart. Mr Stewart stated his reasons for leaving tho Ministry.

Absentees from tho caucus were Messrs Samuel. Tau Henare, and Stallworthy. Mr Forbo s said) a very friendly atmosphere prevailed.

Continuing, the Prime Minister said the Government would not be defeated on. the Bill indemnifying the banks against losses arising out of accumulated exchange credits in London.

When asked whether members of tho Coalition Party had been consulted before the decision to increase the exchange rate was made, Mr 'Forbes said members had left it entirely to tho Government to do whatever it "thought -fit to meet tbq crisis, and ppunised to support the Government i£ whatever policy it was decided to adopt. The . only communication sent to members was one announcing the Cabinet's decision on the exchange question, and requesting them to withhold comment until a statement was'placed before to-day’s caucus. Mr Forbes also stated that the vote ou the Bank Indemnity Bill unquestionably would be on party lines. Any adverse vote would be taken as one of straight-out no-confidence in the Coalition.

It was suggested that- a few city Coalitionists might vote, against the issue. •

"Yes”, replied Mr Forbes, "one or two. This is a major policy issue and we expect every member of the Coalition to vote for it. Members wbo vote against the Coalition on the Bill must be aware of the interpretation their leaders would place on their action.” Asked whether they would he expelled from the party, Mr Forbes replied; “Le;t us take our hurdles as we come to them.”