THE EXCHANGE RATE

King Country Chronicle, Volume XXVI, Issue 3448, 22 November 1932, Page 5

THE EXCHANGE RATE

NO IMMEDIATE ACTION. AWAITING MR. STEWART’S RETURN. CENTRAL BANK NOT ABANDONED. (By Telegraph.—Press Association.) Wellington, this day. It is unlikely ti nt any action will be taken by banks regarding the exchange until the end of the week, after the return from London of Mr. Downie Stewart. Cabinet held a meeting yesterday and subsequently the Prime Minister. Mr. Forbes, declared that the exchange question had not been discussed, while the Government would make no overture to the banks. Mr. Forbes said it was fully expected that any decision that might be made concerning the exchange rate would be referred to the Government for consideration and the opinion and views of the Government will then be considered by the banks before they took action. He did not think a bounty on exports would be the right way to meet the position, as such a scheme would result in a deadweight being added to the national debt. “We are going ahead with the Central Reserve Bank Bill. There need be no doubt about that,” said Mr. Coates when the possibility was mentioned that the measure might be sacrificed if the banks were agreeable to raising the exchange rate. “There can be no bargain of that description,” said Mr. Coates. “The idea is to have a chain of central banks throughout' the Empire, and New Zealand is going to supply its link.”