The Waipukurau Press. PUBLISHED EVERY EVENING. THURSDAY, JANUARY 26, 1933. REAPING THE HARVEST

Waipukurau Press, Volume XXVIII, Issue 29, 26 January 1933, Page 4

The Waipukurau Press. PUBLISHED EVERY EVENING. THURSDAY, JANUARY 26, 1933. REAPING THE HARVEST

The public of New Zealand is reaping the harvest of its own sowing. If the expressions of opinion available, from Parliamentarians are any criterion it is evident that there is a majority in opposition to the higher exchange rate now in operation. The fact that a memorial was presented on behalf of 20 members, showed clearly that plus the Labour Party (24 strong) the opposition had 44 supporters, as against a maximum of 36 on the Government side. Since then the Hon. W. Downie Stewart s position had been made very clear,

increasing the anti-high exchange

majority to 10! Yet, such is the confident feeling of the Prime Minister and his Cabinet as to the backing to be counted upon that the higher rate of exchange was decided upon without even the concurrence of. the Coalition Party! Further, the matter was taken out of the hands of the general body of the people’s representatives. Is not the time overripe for placing greater limitations on the powers of a Cabinet? V hat have the stalwart upholders of the.

party system of government to say in defence of a course of procedure whereby the will of the electors and their representatives is subordinate to the dictates of the Ministry of the day? Having observed the great, injustice done to the democracy in 1916, when as the result of party political loyalty the members of the National Government, with the exception of the late Dr. A. K. Newman and Mr. R. A. Wright, voted for the flotation of our war loans on a free-of-income-tax basis, the effect of which was to provide the large bondholders with £6/3/9 per cent on their investments (the tax concession equalling 7/6 in the £ on the interest payable at 4J per cent.) wh.Ee the small investors, on Post Office certificates, were paid 5 per cent, for their response to what was termed a patriotic appeal! Although it was an unquestionably illiberal proposal all members of the then Liberal Party followed their leader with customary docility, thereby proving that members of Parliament elected as pledged party supporters, must needs at some stage of their service sacrifice their principles and maybe the interests of their electors or country, to the demands of party expediency. The indictment applies to all parties. The great difficulty, however, is to get. democratic men of independent mind., with sufficient wealth to finance their campaigns, into the field—then to convince the people that the “party hacks” have been defeating their will. In these circumstances it is very evident that the electors are only reaping the harvest of the great majority's sowing. All honour to Mr. A. J. Stallworthy for his unequivocal declaration as to his intention to vote as his convictions prompt. It appears evident that Mr. Wright, and possibly Mr. A. M. Samuel, will do likewise, but the impression is that the majority of the twenty memorialists will vote confidence in the Government on the exchange . issue.

Messrs. H. Atmore, C. A. Wilkinson, and H. M. Rushworth, as Independent members, will of course carry their opposition to its logical conclusion irrespective of their party leanings. It must be irksome for the man of initiative to find that on the score of party loyalty he is reduced to the level of a voting automaton. The value of his services is thereby greatly reduced, as he cannot act independently of the party leaders’ will. “A GRAV E MISTAKE’’ Mr. Harman Reeves, chairman of the Dundein Stock Exchange, maintains that. the. Government made a grave mistake from a national point of view in raising the exchange. The

Government’s action would mean appreciation in the value of gold, he continued. Naturally that would help the gold mining companies very considerably, and cause appreciation in the best gold mining shares. It. would also increase the business between New Zealand and Australia in stocks and shares. In the past business had been more or less hampered by the high rate of exchange against Australia. Now that the rate between the two countries had been considerably reduced, prospects were much improved, as a large number of Australian bank shares an d~ other shares were held in New Zealand. In addition, a considerable amount of dividends from bank shares had been allowed to remain in Australia by Neu; Zealand holders, owing to the high rate of exchange. Most of that money would now be brought into New Zealand.