THE COALITION

Manawatu Standard, Volume LII, Issue 308, 26 November 1932, Page 7

THE COALITION

IS ITS STABILITY MENACED? PARLIAMENTARY LOBBY RUMOURS. (By Telegraph.—Special to Standard.) WELLINGTON, Nov. 26. Is an early cleavage ahead of the Coalition? This is the question which is now commanding the undivided attention of political observers who, in the series of recent events, see all the portents of a political storm which may have serious effects on the duration of the Coalition. Clouds of intrigue dissatisfaction and uncertainty have appeared on the horizon and in some well-informed quarters thp prediction is current that dramatic developments may be looked for within the ensuing fortnight. In Ministerial circles it is admitted that the coming week may produce complications over the exchange issue, but even the Prime Minister is not in a position to suggest the precise shape these will take. The expectation in the lobbies is that a meeting will be held on Tuesday of the members who signed the memorial favouring political action to artifically raise the exchange to 25 per cent, above parity. Upon the decision of this meeting, if one is held, the course of the succeeding events will be largely shaped. The few exchange inflationists who are in Wellington to-day are more than dissatisfied with the decision of the Bank of New Zealand, and the alternative offer made by the directorate has aroused no enthusiasm among them, but they are unabie to say what their next move will be. In authoritative quarters, however, it is regarded as certain that the question will have its sequel on the floor of tho House in a notice for adjournment. The Standing Orders provide this facility for the discussion of matters of urgent public importance. Whether Mr Speaker would accept such a motion is a question of some doubt, since it is understood that the effort by the Labour Opposition to precipitate a general debate on the plight of the farmer has already failed. It has been suggested that either side could utilise the next Imprest Supply Bill for the purpose, but this must be ruled out because supply will not be sought for another month, the Government in its last imprest measure having appropriated sufficient funds to carry on the Administration until the end of the year. Incidentally, the fact that two months’ supply instead of the formal one month’s was asked for apparently escaped the notice of tho House at the time. Although it would be competent for the Government to deal fairly comfortably with a question of this nature there are implications in the current lobby rumours which suggest the development of a serious situation. It is well known that throughout the recent differences on the exchange rates the fanning section of the Coalition have been the moving spirits, and it is now said that their dissatisfaction is not confined to the exchange issue. According to one story which is going the rounds prominent associates of the Reform Party outside the House intend next week to consult their Parliamentary supporters with a view to further representations being made to the Prime Minister. The form which these representations will take has not been disclosed* although it is said that they will have all the significance of a second ultimatum. Members who were seen this morning did not confirm this, report. Based on the experience the Coalition has had since its formation a little over a year ago it would appear that- if a break-up were brought about it would be as the result of the town versus country division. This theory, it would seem, is supported by the latest developments, and should there be a split it would not be surprising if a number of city Reformers aligned themselves with the United group under the leadership of Rt. Hon. G. W. Forbes. Coming events may yet show that the security of the Administration and of the Coalition will be preserved by the support of the city Coalitionists who signed the counter exchange memorial. The brightest expectation is provided by the knowledge that the 25 Coalitionists are not unanimous that any action of theirs should ignore the safety of the Coalition, and if it came to a decision a number of those who signed the high exchange memorial would be found supporting the GovernSummed up, the possible complications and consequences may be counterbalanced by the obvious division that has already shown itself in the ranks of the so-called recalcitrants.

NO MEETING OF ASSOCIATED. BANKS. fßv Telegraph.— Special to Standard.) K y WELLINGTON, Nov. 26. No meeting of the Associated Banks was held to-day, which l is a fair indication that they are in accord with the decision of the Bank of Now Zealand not to interefere with the present exchange rates. So far no request for such meeting has come from any individual bank. In the circumstances it is unlikely that anything more than a formal reply will be forwarded to the city Coalitionists who submitted a counter-memorial. The inflationist memorial was presented to the Bank of New Zealand only.

ARRANGEMENTS FOR FREIGHT PAYMENTS. Per Press Association. WELLINGTON, Nov. 26. It is announced by all the steamship companies taking cargo for the United States and Canada that freights for Pacific and Atlantic ports and inland Canadian and States points, if paid at the destination, are, as usual, to be collected at par of exchange. In the event of shippers specially desiring to prepay at the port of shipment in New Zealand, a surcharge for conversion and exchange will be made to bring the freight in New Zealand currency to the equivalent of the American or Canadian currency applicable on the day before the vos-<;I commences loading at the first port in New Zealand, such surcharge applying to the vessel’s total loading in New Zealand. This place freight is paid as above on the same basis as the freight payable at the destination, which is collected at the par rate of 4.86 dollars to the pound. This change is necessitated by the fact that the previous surcharge of 10 per cent is not sufficient to meet the current basis of conversion at the above points.