EXCHANGE CONTROVERSY

Taranaki Daily News, 21 November 1932, Page 7

EXCHANGE CONTROVERSY

ATTITUDE OF GOVERNMENT

ENTIRELY MATTER FOR BANK

NO NEGOTIATIONS OPENED By Telegraph.—Press Association. Wellington, Last Night The announcement that the Government had not departed a step from the attitude it adopted when the exchange controversy was raging earlier in the year was made by the Rt. Hon. G. W. Forbes on Saturday. The question was entirely one for the banks, he said. If the banks decided there should be an alteration the Government would have to accept that decision in the same way as any other section of the community, and he was prepared to do so. Mr. Forbes stated emphatically that the banks had not approached the Government on the question. Asked whether in the, event of exchange rising and surplus credits accumulating in London as the outcome of the contractions of imports the Government would come to the rescue of the banks and guarantee them against loss, Mr. Forbes said the banks had not raised the question with the Government. “They have not approached us with any proposition at all,” he affirmed. MANUFACTURERS UNMOVED. FEAR OF HIGHER EXCHANGE. Wellington, Last Night. The view was expressed at a meeting of the New Zealand Manufacturers’ Federation executive that the manufacturers had not altered their opinion on the exchange question. While admitting that a higher exchange would provide an extra duty in favour of local manu- , facturers, the feeling was that the general result to New Zealand- would certainly be detrimental. It was pointed out that the extra*exchange had to be paid by New Zealanders in New Zealand and would not increase the circulation, as some of the advocates of high exchange made out. The manufacturers were definitely against an artificial exchange and would do all they could to prevent it being forced on New Zealand. OPINION FROM AUSTRALIA. EFFECTS OF. HIGHER RATE. - Auckland, November 19. Mr. W. P. Endean, M.P., who received an affirmative reply to an inquiry in Australia as to whether the high exchange had proved beneficial to the Commonwealth, early this week sent another cable to a reliable authority at Sydney asking whether it would be advisable to fix a high rate of exchange similar to Australia’s. The reply received states that the effect of high exchange was to stimulate primary exports temporarily, to increase internal costs, also the burden of interest remittances. It was logical that an increase in taxation would follow. Mr. Endean has telegraphed this reply to Mr. Forbes, with the comment:. “This would seem to be a sounder view. Kindly convey this information to Sir Henry Buckleton.” PROTEST FROM IMPORTERS. DUNEDIN ASSOCIATION OBJECTS. Dunedin, November 19. The Importers’ and Shippers’ Association at a special meeting decided to request its delegate on'the New Zealand Importers’ Federation to protest emphatically against the exchange rate being artificially interfered with. DENIAL BY LABOUR PARTY. BANKS AND FINANCIERS’ POWER. / Wellington, Last Night. A denial that the Labour Party had given consideration to the exchange question was made by the Leader of the Opposition, Mr. H. E. Holland. Mr. Hofland said the Prime Minister’s statement to the effect that the banks must decide the country’s policy on the exchange question emphasise? the truth of the Labour Party’s contention that the country was being run by the banks and financial institutions, and not by the Government.