THE EXCHANGE ISSUE

Otago Daily Times, Issue 21940, 29 April 1933, Page 10

THE EXCHANGE ISSUE

MINISTER REPLIES TO CRITICISM QUESTION OF RUSSIAN TRADE (Pek United Pbess Association.) WELLINGTON, April 28. In a statement to-day in reply to an attack by Mr E. Salmond, president of the Importers’ Federation, on* the exchange issue, the Minister of Finance (Mr J. G. Coates) said that Mr Salmond’s statement was couched in extravagant language, which carried its own condemnation. The Minister refuted the assertion that unemployment had increased. The total registrations in January were 67,8(53, while the .latest returns were 66,652. Mr Salmond had also made an extravagant statement as to the loss to the Government on account of the exchange, giving an estimate of £8,000,000. The tr.uth was that, under the terms of the agreement with the bank, the Government had taken over the surplus London funds, but this fund so far had not exceeded the amount required to meet the Government’s ordinary existing requirements. Regarding Russian trade,' Mr Coates said that the Prime Minister (Mr G. W. Forbes), who was absent at Palmerston North, would make a statement in the near future. The question of Russian trade had been discussed at Ottaw'a, and .New Zealand had given Great Britain an assurance that she would act in concert in any action taken. Peti-ol is the main item likely to he affected, and representatives of the companies trading in Russian petrol are conferring with the Government, which is believed to be taking their position into consideration.