"Discussed Dispassionately”

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

"Discussed Dispassionately”

HOW WILL DEFICIT BE MET? Per Pres 3 Association WELLINGTON, Last Night. Five and a-lulf hours were spent hy the Caucus of Ccalition members to-day discussing policy. .JJlmost the sole topic was the exchange rate. The meeting will bo resumed to-morrow. The leader of the Government expressed confidence this evening that the exchange policy will be endorsed hy a large majority. The three principal speakers were Messrs. Forbes, Coates and Downie Stewart. Mr. Stewart received a cordial welcome from all members, and from what was said at the gathering it 'is understood it was made quite clear that Mr. Stewart will continuo to give general support to the Government even although he might differ from its decisions on certain points. After the Caucus, Mr. Forbes said exchange had been discussed dispassionately all day. He expressed satisfaction at the generally helpful attitude of the members. There was no danger of the Government failing to retain a substantial majority. With nine months figures available Mr. Forbes considers the deficit for the current year will be confined within the £1,000,000 estimated. The revenue, he said, was upholding reasonably well and the expenditure was being kept down.

The revised Treasury estimate of the effect of tho higher exchange gives a loss in Customs of £1,000,000, extra overseas interest £1,000,and the hanks indemnity of £1,000,000. How this, plus the deficit ordinarily expected, is to be met will probably be discussed by Mr. Forbes in the Financial Statement on Thursday night. Evils Greater Than Benefits CHAMBER OF COMMERCE CONDEMNATION WELLINGTON, Last Night. The Government’s action in pegging tho rate of exchange was discussed in committee by tho council of tho Wellington Chamber of Commerce to-night, and a resolution of protest was carried as follows: “That the council of tho Wellington Chamber of Commerce emphatically condemns tho action of the Government in violating established banking practices by causing the

rate of exchange to be artificially pegged; that this action must inevitably create greater evils than tho present action is calculated to overcome, and in the meantime the majority must suffer for the benefit of the minority.”

Mr. Strouaeh Paterson, seconding the motion, remarked that Government interference was always cumulative, necessitating further interference. He instanced the mortgage relief legislation and declared wc would have it again in raising the rate of exchange.

Mr Stallworthy Will Vote Against Government AUCKLAND, Last Night. A definite statement that he would support a no-confidence motion against the Government’s exchange Tate policy even if tho Government’s fate depended on his vote, was made by Mr. A. J. Stallworthy, M.P. for Eden, at a meeting of electors to-night. Mr. Stallworthy was accorded a unanimous vote of confidence with which a resolution of protest against tho raising of the exchange rato was incorporated.