MATTER FOR BANKS

Evening Post, Volume CXIV, Issue 122, 19 November 1932, Page 14

MATTER FOR BANKS

C4OVEENMENT POLICY

MR. FORBES INTERVIEWED

The important announcement (hat the Government had not departed one step from the attitude it had adopted when the exchange controversy was raging earlier in the year was made by-the Prime Minister (tho Eight Hon. G. W. ' Forbes) in an interview with a "Post" representative to-day.

"The question of exchange is entirely one for the banks," said Mr. Forbes. "I made that statement previously, and I repeat it to-day. It is for them to decide what is. the best course for them to adopt in the interests of sound banking and of the country. Let me make it clear that we have not altered the attitude from the one we took up when the controversy was previously before the country. On that occasion we said it was a question for the banks, and if \ the banks decided that 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 would be prepared to do so. From that attitude we have not departed. "Members of Parliament," added Mr. Forbes, "have been very active iif the matter, and have interviewed tho banks, and as well have made representations to the Ministry. Naturally, members have the right to submit to the Government any-proposals xrhioh they consider would meet tho present position."

Minister stated emphatically that the banks had not approached tho Government on the question of exchange.

Mr. Forbes was asked whether, in the event of the exchange rising and surplus credits accumulating in London, as an outcome of the contraction of imports, the Government would come to the rescue of tho banks and guarantee them against loss.

"Tho banks have not raised this question with the .Government," replied Mr. Forbes. "They have not approached us with any propositions at all." ■