HIGH EXCHANGE RATE

Hawera Star, Volume LII, 19 November 1932, Page 9

HIGH EXCHANGE RATE

INCREASED TAXATION BURDEN. OPINION FROM SYDNEY. (By Telegraph—Press Association..) AUCKLAND, Nov. 19. Mr. AY. P. Endean, M.P. "for Parnell, ay ho lias early this Aveek, had an affirmative reply to an inquiry in Australia as to whether the l high exchange had proved beneficial to the Commonwealth, sent another cable to a reliable authority in Sydney asking whether it would be advisable, to • fix a high rate of exchange similar to Australia. The reply received stated that the effect of high exchange is to stimulate primary exports temporarily, to increase internal costs and also the burden of interest remittances and that it is logical that an increase in taxation Avould follow. Mr. Endean has telegraphed this reply to the Prime Minister, the Kt. Hon. G. AY. Forbes, with the comment “This would seem to be a sounder Anew. Kindly convey this information to Sir Henry Buckleton.”

STATE VIEW NOT CHANGED

ASSURANCE BY MR FORBES

AVELLINGTON, Nov

An announcement that the Government has not departed a step from the attitude adopted when tiie exchange controversy was raging earlier in the year was made by the Prime Minister, the Rt. Hon. G. \V. Forbes, to-day. He said the question is eiitireJjy one for the' banks. If the banks decided there should be an alteration the Government Avould hai r e to accept that decision in the same Avay as any other section of the community and Avould be prepared to do so. He stated emphatically that the hanks had not approached the Government on the question. Asked Avhether in .the ei-ent of exchange rising and surplus credit accumulating in London as an outcome of a contraction of imports the Government AA'ould come to the rescue of the banks and guarantee them against loss, he said the banks had not raised the' Question with the Government. They had not approached th© Government AAdth any propositions at all.