EXCHANGE ISSUE

Poverty Bay Herald, Volume LIX, Issue 17947, 26 November 1932, Page 6

EXCHANGE ISSUE

MANY COMPLICATIONS POLITICAL STORM COMING? CLOUDS OF INTRIGUE COALITION’S CRITICAL TIME (l’nrliiumuitury Report or.) WELLINGTON, this day. "Is an early cleavage, precipitated by the disaffected section of the Reform Party, ahead of the Coalition?” This is the question which is now commanding the undivided attention of political observers, who in a series of recent events see all the portents for a political storm which may have most devastating effects on the stability of the Government in New Zealand. Cloifds of intrigue, dissatisfaction, and uncertainty have appeared on the horizon, and in some well-informed quarters the prediction is current that a deluge of dramatic developments may bo looked for within the ensuing fortnight.

In Ministerial circles it is admitted that tlic coming week may produce complications over the exchange issue, but even tho Prime Minister is not in a position to suggest the precise shape these will take. The expectation in tic lobbies is that a meeting wifi be held on Tuesday of members who signed the memorial favoring political action to artificially raise the exchange rale to 25 per cent, above parity. Upon tile decision of ill is meeting, if one is held, the course of the. succeeding events will be largely shaped. The few exchange inflationists who are in Wellington to-day are more than dissatisfied with the decision of tho Bank of Now Zealand, and the alternative offer made by the directorate has aroused no enthusiasm among them, but they are unable to say what their next move will be. MOVES IN THE HOUSE

In authoritative quarters, however, it is regarded as certain that the question will have its sequel on the floor of the House in a notice for an adjournment of standing orders, to provide the facility ior discussion oi matters of urgent public importance. Whether Mr. Speaker would accept such a motion is a question of some doubt, since it is understood that au effort by the Labor opposition to precipitate a general debate on flip plight of the farmer has already failed. It has been suggested that either sulo could utilise the next Imprest Supply Bill for the purpose, but this must bo ruled out because supply will not be sought for another month, the Government in its last imprest measure having appropriated sufficient funds to carry on the administration until tho end of trie year. Incidentally, the fact that two months’ supply instead of the formal one month was asked for apparently escaped notice in the House at the time. Although it would be corn petont for the Government to deal fairly comfortably with a question of this nature, thero are implications in current lobby rumors which suggest the development of a grave situation.

THE DISSATISFIED SECTION It, is well known that throughout the recent differences on exchange rates the farming section of the Reform. Party has been tho moving spirit, and it is now said that their dissatisfaction is not confined to tho exchange, issue.. According to one story which, is going the rounds, prominent associates of the Reform Party outside the House of Representatives intend next: week to consult their Parliamen tary supporters with a view to further representations being made to (ho Prime Minister. The form which these representations will take has nd been disclosed, although it is said they will have (lie significance of a second ultimatum. Members seen this morning did not confirm this report.

Based on the experience the Coalition has had. since its formation a little over a year ago, it would a* - pear that if a break-up were brought about it would be as a result of the town versus country division. This theory, it would seem, is supported ny the latest developments and should there be a split it would not be miiprising if a number of city Reform Party members aligned themselves with the United group under 11 1 > leadership of the ID. Hon. (!. \V. Forbes. It is an open lobby secret that one prominent Reformer has slated that he will novbr contest another election as a supporter of the ID. 11. m. J. G. Coates. Although from time to time a rumor persists that the Reform Party’s search for a new leader which started in 192.3 is still being continued, it is known that, rural Reformers in the House would, especially in view of Ihe part which Mr. Coates lias displayed in the high exchange controversy, give him their wholehearted allegiance. CITY COALITIONISTS’ POSITION Coining events may yet show that the security of the administration and (lie integrity of the Coalition will be preserved by Hie support of city Coalitionists who signed tho counter exchange memorial. Tho brightest ray of hope is provided by tho knowledge that the 25 Coalitionists are not unanimous that any action of theirs should ignore the safety of the Coalition, and if it came to a show-down a number of those who signed the high exchange memorial would he found supporting the Government. Summed up, the possible complications and consequences may be counterbalanced by the obvious division that has already shown itself in the ranks of the so-called recalcitrants.

No meeting of the associated hanks was held to-day, which is a fair indication that they are in accord with the decision of the Bank of New Zealand not to interfere with the present exchange rates. So far no request for such a meeting has come from any individual bank. In the circumstances it is unlikely that anything more than a formal reply will ho forwarded to the city Coalitionists who submitted a counter-memorial. The inflationist memo rial was presented to the Bank of New Zealand only. RATE RELIEF PROPOSAL WELL RECEIVED IN AUCKLAND (Pur Press Association.) AUCKLAND, this day. The Bank of 'New Zealand’s rate relief proposal has been favorably received by county council representatives, who emphasise the difficulty that is being experienced in collecting rates at present. One official suggested that it would greatly 'help farmers if the Covernmeut arranged for the Main Highways Board to take over local bodies’ liabilities for interest and sinking fund on loans raised in the past for roads which are now main highways. The president of the Auckland Farmers’ Union, Mr Ross, said tlmt derating was what they had been agitating for for years. The trouble about the present proposal was that the re-

lief apparently would bo for cm* year only, and 1 lio fanner wauled permanent,'help. The waiving of it lie land lax wao a small matter and would limp only tin' big men. “The next move is with the Government,” said Mr Oliver Nicholson, chairman of directors of the Hank of New Zealand, on Ins return from Wei-