THE HIGH EXCHANGE

Otago Daily Times, Issue 22066, 23 September 1933, Page 10

THE HIGH EXCHANGE

There will be various occasions during the parliamentary session on which the exchange policy forced on the country by the Government will be open for discussion. Nevertheless, it is somewhat surprising that Ministers did not offer a word of reply yesterday to the criticism of the policy that was expressed during a discussion on the introduction of a private member’s Bill proposing the repeal of the Banks Indemnity (Exchange) Act. Thei criticism, it is to be observed, wate not confined to members of the Opposition. The Bill was, in fact, introduced by a member of the Coalition Party, and another member of that party vigorously denounced the operation of the high exchange rate. The Government must realise that a great deal of uneasiness is being felt throughout the country over the extent of the liability which is being incurred by the Dominion , under the legislation, that guarantees the banks against loss through the accumulation of funds in London. If the Government is in a position to reassure the public on this point, it might be expected of it that it would seize the opportunity off doing so. It is not to be seriously contended that the high exchange has not been of benefit to the exporting interests. In order, however, that the public apprehension may be allayed, it will be necessary for the Government to show that this benefit has been so substantial as to admit of its being placed in the balance against the positive and demonstrable disadvantages of the policy to which the country was committed over six months ago, and to which it must apparently continue to submit for at least some time to come.