RATE OF EXCHANGE

Poverty Bay Herald, Volume LIX, Issue 17943, 22 November 1932, Page 9

RATE OF EXCHANGE

PREMIER APPROACHED MATTER FOR THE BANKS RIGHT OF CONSULTATION (Parliamentary Reporter.) WELLINGTON, this day. The Government’s right to consult with the directorate of the Bank of New Zealand was defended by the Rt. Hon. G. W. Forbes to-day, when replyling to an importers’ deputation concerning the exchange issue. The deputation was one of the largest of its kind organised in Wellington, and represented every claes of the business and commercial community, Opposition to an artificial raising of the exchange rate was voiced along lines of previoulsy expressed opinions, and the Prime Minister was asked that the whole matter should be allowed to stand over until the return of the Hon. W. Downie Stewart.

“As I have said before, the question of exchange is a matter for the banks,” said Mr Forbes. “I think the proper course for the deputation to adopt would have been to wait upon the banks, as it is not the intention of the Government to interfere with exchange. If the banks consider that it is in the interests of the community and-: of their customers that relief should be given by way of high exchange, then the Government would have to put up with the additional taxation that would be necessary.”

Referring to the Wellington Mayor’s Statement at a meeting yesterday regarding political action being taken with the Bank of New Zealand, Mr Forbes said the position was that the deputation of members of Parliament which had waited on him had asked that their representations should be forwarded to the Bank of New Zealand. They did not ask that the Associated Banks should be consulted. All their communications were addressed to the Bank of New Zealand. A voice: Why? Mr Forbes: You had better ask the members of Parliament. The only meeting I had with representatives of the Bank of New Zealand was to hand on the representations of the members of Parliament. An idea has been created that the Government is ignoring the chairman of the Associated Banks, but what I have said is exactly the position. The Government is entitled to have a consultation with the management of what is looked upon as tho Government bank, I don’t, see that there can be anything out of order in discussing matters of finance with the manager of the Bank of New Zealand, even if we don’t go to the other banks as well. After all, the Bank of New Zealand is the Government bank.

LOCAL BODIES’ POSITION AN INDEMNITY SOUGHT (Per Press Association.) r AUCKLAND, this day. The chairman of the Transport Board, Mr J. A. C. Allum, said at a board meeting that if the exchange rate were raised to '25 per cent. —but he could scarcely believe it was possible —the board would have to pay £20,000 exchange on London interest payments, an increase of £12,000. It. would mean that all the good work done in trying to get, capital charges reduced "would be nullified. Mr It. G. R. Mason. M.P.. thought that the Government should be asked to indemnify local bodies against any increased costs imposed by high exchange. ... Tho board resolved to ask the Prune Minister to tako such action as would avoid placing additional burdens on local bodies.