SERIOUS CRISIS

Evening Post, Volume CXV, Issue 14, 18 January 1933, Page 10

SERIOUS CRISIS

EXCHANGE AND POLITICS

MR. STEWART'S POSITION

REPORTED RESIGNATION

Rumours of a political crisis, even more serious than that • which threatened the existence of the Government a month ago, have been , causing the greatest uneasiness in 1 the city. The report that the Govern- ! ment had yielded, or was about to i yield, to the demand for a high ex- i change was not at first credited by ) responsible leaders in commercial j circles. They contradicted the J rumour in the belief that it was j . absurd and wholly incredible that ' a Government which had refused to ■, intervene at the end of November < would completely reverse its policy . in the tniddle of January. But those • who sought official contradiction of ( the rumours were unable to obtain l it. No reassurance would be given \ by the Government. Uneasiness to- « day became alarm when the reports j Avere supported by the widespread I statement that the high rate policy , had already been approved and i that the Minister of Finance, \ the Hon. W. Downie Stewart, i after strongly opposing this dccision had tendered his resignation ( as a member of the Government. The * profound impression this statement 1 made far surpassed the effect of any J recent political crisis. On every side 1 are'heard expressions of alarm and i unbelief. Business men, not easily a disturbed, voiced their grave fears for the future, if the country were thus deprived of the services of the i Minister whose courage, steadfast * purpose, and financial experience c had been a firm foundation for confi- * dence. . t

A "Post" representative to-day interviewed the Prime Minister (the Right Hon. G. W. Forbes) to obtain an official statement on these reports. "I have no comment to make at all," said Mr. Forbes when he was asked if he would care to make any statement regarding the political position. ■■ "You are at liberty to see Mr. Downie Stewart." Mr. Forbes declined to confirm or deny reports that Mr. Stewart was tendering his resigna,tion as a member of the Government. The Minister of Public Works (the Right Hon. J. G. Coates), who is leader of the Reform section of the Coalition Government, also declined to make any comment. Mr. Stewart was also interviewed by a "Post" representative, but he, too, declined to say' anything for publication.