EXCHANGE AGITATION

Poverty Bay Herald, Volume LIX, Issue 17946, 25 November 1932, Page 5

EXCHANGE AGITATION

NEW INTEREST CREATED OPPOSITION TO INCREASE MEMORIAL TO MINISTERS (Parliamentary Reporter.) WELLINGTON, this day. Claiming that their representations have the guaranteed support of 20 members of Parliament, outside the official Opposition, Coalitionists last night presented a signed memorial to the Et, Hon. G. W. Forbes and the Hon. W. Downie Stewart vehemently protesting against any political intervention in the exchange rate issue, and pressing for an early statement 1o allay the anxiety at present prevailing throughout the country.

Reasons for their opposition to an artificially high exchange are set out in detail, and the members are confident that the Cabinet cannot fail to bo impressed by the carefully considered appeal. The strength which the anti-high exchange agitation has gained is largely due to the efforts of Mr. A. J. Stallworthy (Coal. Eden) who, during the past week, has worked almost incessantly to organise and consolidate city Coalitionists and Independents who feel that only disaster and chaos can follow in the wake of a policy which involves political manipulation with exchange. THE LABOR ATTITUDE

Labor Party members were not invited to sign the memorial. Their views were canvassed by members ol the anti-liigh exchange group, but it was realised that whatever were the opinions of individuals in the Official Opposition they would speak with one unmistakable voice should the late ol the Government be involved in any motion or development which came before the House. It was decided to confine the representations to the Prime /Minister to within the Coalition ranks,’ and make an exception for Independents. Names of all the Coalitionists who oppose a high exchange policy do not appear on the memorial presented to Mr. Forbes and Mr. Stewart. Some stated that they preferred that their names should not bo published until they had had an opportunity of fully explaining their attitude on the floor of the House.

A copy of the memorial is to be for warded to the chairman of the As sociated Banks.

It was admitted by city members last night that although the farming section of the House had been defeated in its major objective, namely political action to secure an artificially highpegged exchange, they had won some ground in preventing a lowering of the exchange rate. REDUCTION WARRANTED

“The trading position of the country is such,” said one of the city Coalitionists, “that a reduction in the present exchange rate of 10 per cent, was inevitable before the end of the year. Our favorable position would have induced an automatic lowering of the rate, and this, it is almost needless to say, would have acted as a wonderful stimulant to business and definitely decreased unemployment. Now, however, that reduction in the rate cannot be expected. The agitation for a high rate has failed, but it lias been sufficiently strong to chock the reduction our favorable trade balance warrants. ’ ’

By tho return of Mr. Stewart, the atmosphere which has prevailed for the past week has become even more tense, and excitement in the lobbies ruled high when it leaked out that the city group had delivered their “little reminder" to the Government. It is regarded as significant that one of the first people to greet Mr. Stewart upon his return to Wellington this afternoon was Mr. J. T. Grose, chairman of the Associated Banks, which organisation has consistently opposed any alteration in tho present exchange level. What action the Labor members will take is still a matter of speculation. At the moment they are interested spectators, watching every move in a game they know so well. NO COMMENT TO MAKE MR. STEWART APPROACHED (Parliamentary Reporter.) WELLINGTON, this day. “I understand that there lias been a controversy concerning the exchange rate, but 1 have no comment to make concerning it,” said tho Hon. W. Downie Stewart when interviewed late last night. Mr. Stewart was in occupation of his rooms in Parliament Buildings a few hours after his return from England, and was busy making himself acquainted with recent developments. He does not intend to resume his portfolios of Finance and Customs for a few days.