RATE OF EXCHANGE

Hokitika Guardian, 22 November 1932, Page 5

RATE OF EXCHANGE

UNCERTAIN ISSUE BANKS OPPOSE INTERFERENCE. ENCE. (Per Press Association — Ccjyright. ) WELLINGTON, November 21. The National Bank of New Zealand, the- Bank of Australia, the Union Bank of Australia and the Commercial Bank of Australia are strongly opposed to any interference with the present exchange rate. It is understood, also, that Sir Henry Buckle-ton, general manager of the Bank of New Zealand, is, personally, also "opposed to any increase the rate. As .far ais the policy of the Bank of' New Zealand is concerned, the matter was dealt with by the chairman, Mr Oliver Nicholson, in his speech at the. annual meeting of shareholders of the 'bank last June. That there is a possibility of the bank reviewing its position is indicated by the fact that a special meeting of the- board of directors has been held af Wellington. The directors of the bank are Mr Oliver Nicholson (chairman), Sir George Ell'ot, Sir Harold Beaucb .nip, Mr William Watson, Mr R. W. Gibbs, and Mr R, A. Anderson. Sir Ha jld Beauchamp will arrive at Wellington on Wednesday from London in the Rnngitata, by which ship the Minister of Finance, the Hon. W. Downie Stewart, is also returning.

The Directors of the Bank of New Zealand will .meet on Friday to consider the exchange rate New Zealand on London.

MEMORIAL TO BANKS UNSIGNED

COALITION M.P.’s GIVE REASON

WJ LLTNGTON, November 21

Of four Coalition members who dU I not sign the memorial to hanks, and • who were stated to have given verbal support to the high exchange movement two have made statements indicating the -reasons for their refusal. -Mr P. McSkimming, M.P., for Clutha, says be is definitely opposed to an artificially high exchange rate. “I believ-e in a free exchange. It should not b e pegged high, and it should not be pegged low,” said Mir McSkimming. Looking at the position from the point of view of the country as a whole, it seemed that any tinkering with the exchancre rate would have a boomerang effect. During the election campaign, when he was addressing meetings of farmers, ,h e had frequently been a°ked if he were in favour of free exchange, a request which had represented the view of the farmers at that time. He had replied that he believed that exchange""sho-ur always be fre„e, -and from that opinion he had not wavered.

Mr E. F. Healey, M.P., fo r Wairnu, said that his only' comment, when asked to sign the memorial to the banks war-: “I have not gone deeply enough into the question. I am giving it _d e ep thought.” Mr Healey added that he had pfiven no indica' on that he was in sympathy with th e movement, nor Vi ad he stated that he was opposed to it.”

PREMIER VOICES OPINION

CENTRAL RESERVE BANK BILL

, WELLINGTON, November 22. It is unlikely that any, acty ,i will be taken, bv the banks regarding die exchange, until the. end of the week, after t! * return from London, of the ■Hon. D-wnie Stewart.

Cabinet held a, meeting yesterday and .subsequently the Prime Minister. Ft. Hon. G. W. Forbes, declared that the. exchange .question was not discussed, while the Government would make uo overture, to tile auks. It was fully expected that a\.y decision that might be made concerning the exchange rate would be rei n-ed to the Government fo r consiueration and the opinion is that the view of the Government would then b e . considered by. the banks before they took action. He did not think that a bounty on exports would be the right -way to meet the position, as such a .scheme wor’d result in a dead weight being added to this national debt.

-• \are going aimed with the Central Reserve Bank Bill, there need be no doubt about that,” said the Hon. J. G. 'Coates, when the possibility Wtis mentioned that the measure might be sacrificed if the banks were agreeable to raising the exchange rate. “There onn be no bargain of that description,, said Mr Coates. “The idea is to h ve 0 v, n ; n of consul Imiks throughout the Empire, and N-ew Zealand is going to supply its link.” _____