POLITICAL SITUATION

Otago Daily Times, Issue 22654, 20 August 1935, Page 7

POLITICAL SITUATION

COMMENT BY THE LEADERS HIGH EXCHANGE TO REMAIN i (Per United Press Association) WELLINGTON, August .19. Mr Forbes to-day referred to the political situation. Referring to Sir Alexander Herdman, he said he was very disappointed at his speech, which was not one which could be expected from a gentleman who had been for so long in a position of responsibility, for he had ignored all the difficulties through which the country had gone. Sir Alexander Herdnian’s condemnation of the measures which were necessary in that crisis to place the country in a sound position to meet its obligations was surprising. “ I was disappointed at the tone of his remarks,” said Mr Forbes.

Replying to a question Mr Forbes gave an unqualified denial to the suggestion that he understood the exchange rate would be reduced gradually. It had been responsible in part for the successful result of the meat negotiations. Practically every country had been forced to adopt some form of currency control, and admiration had been expressed in England for the manner in which New Zealand had faced its difficulties. Mr Forbes said the Government hoped when full information was available to do something to reduce taxation. Mr Coates, in an interview, said the Budget proposals would be completed when he had had an opportunity of examining the financial position. He was unable to say at the moment whether it would be 'possible to relieve the taxpayers or to restore any further public service cuts, although the Government was hopeful it would be possible to do so shortly. He would soon be able to announce the result of the various trade negotiations he had undertaken.