Exchange Increase Will Be Ratified

Manawatu Times, Volume LVI, Issue 7064, 25 January 1933, Page 7

Exchange Increase Will Be Ratified

Prime Minister Whips Coalition Into Line GOVERNMENT MEMBERS MUST VOTE FOR IT Per Press Association WELLINGTON, Jan. 24. Questioned to-day, the Prime Minister, Mr Forbes, said the Government would not be dofeated on the Bill indemnifying the banks against losses arising out of accumulated exchange credits in London. When asked whether the members of tho Coalition Party had been consulted before the decision to increase the exchange was made, lie said members had left it entirely to the Government to do whatever they thought fit to meet the crisis and had promised to support tho Government in whatever policy it decidod to adopt. The only communication sent to members was one announcing 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 on the Bank Indemnity Bill unquestionably would bo on party lines. Any adverse vote would bo taken as one of straight-out no-confidence in tho Caolition. It was suggested that a few city Coalitionists might wish to vote against the issue. “Yes,” replied Mr Forbes, “one or two. Tills is a major policy issue and we expect every member of the Coalition to vote for it. Members who vote against the Coalition on tlio Bill must be aware of the interpretation their leaders would place on their action.” Asked whether they would be expelled from the Party, Mr Forbes replied: “Let us take our hurdles as we come to them.” The caucus of the Coalition Party spent all morning discussing the Government’s decision to raise tho exchange rate and it was addressed by Mr Forbes, Mr Coates and Mr Downie Stewart. Mr Stewart stated his reasons for leaving the Ministry. Absentees from the caucus were: Messrs Samuel, Tau Hcnare, and Stallworthy. Mr Forbes said a very friendly atmosphere prevailed. No Increase in Unemployment Tax NO INTERNAL LOAN. GOVERNMENT’S NEGATIVE ASSURANCES. WELLINGTON, Jan. 24. It was authoritatively ascertained to-day that the Government—Does not intend to raise an internal loan. Does not intend to increase the personnel of the Legislative Council during the currency of the present session, and Doe 3 not intend to increase the Unemployment Tax this session.