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NO EXCHANGE PLEDGE

PREMIER ON MR STEWART'S RESIGNATION LATTER QUOTES BUSINESS VIEW [From Ode Parliamentary Reporter-] WELLINGTON, September 26. “ Until I read it in the newspapers I was in complete ignorance that 1 was the cause of Mr Downie Stewart leaving the Cabinet,” declared the Prim® Minister in the House to-night, referring to the ex-Minister’s recent Dunedin speech, where it was suggested that Mr Forbes departed from his pledge not to interfere with exchange. To refute this the Prime Minister produced several records, and explained that when a deputation saw him on November 21 he told them that the matter of exchange was one for the hanks. The member for Dunedin West came back to New Zealand four days later. Parliament adjourned on December 9 to have an examination into the country’s affairs with a view, to bringing in measures to meet the very difficult financial position. As a result they had to face up to things, face up to the fact that costs and prices showed a great disparity. “ We could only face it,” continued Mr Forbes, “ either by bringing down costs by direct action or by raising the rate or exchange. Those were th® alternatives, and after a great deal of discussion I came to the conclusion that the raising of the rate of exchange was one of the ways in which we could assist our people better than by going in for a further deflation policy.” H« admitted that two months before h® had said it was a matter for the banks, and if he had said then that the exchange would rise, someone could hav® made a large sum of money. The banks told the Government they would not raise the rate, but the Government realised that this was the best way to give relief, and decided to do it. He asked members if, in the fac® of these circumstances, be should hav® continued to say that exchange should not be raised. The thing was too absurd to suggest that he would noli alter things when it was obvious th® alteration was for the benefit of th® country. “ I gav® no pledge to th© depute tion that the Government would not retain its freedom to deal with any of the matters that came before it,” concluded Mr Forbes. “ I tied myself to no deputation.” ' Mr Stewart interposed briefly in th* debate to answer the Prime Minister, He emphasised his contention that Mr Forbes was deeply committed not to do the thing he did do, and business men considered the raising of the rat® of exchange a deliberate breach of confidence.

Mr Speaker called the member to order as the remark involved a refleo tion on the Prime Minister. Mr Stewart: “ And the Prime Min** ister has reflected on me.” Mr Stewart explained that he was reading the (resolution of a Wellington 'business men’s meeting, but he had other resolutions quite as strong which he proceeded to detail, showing, as he declared, that business men had relied on the assurance of the Government that exchange would not be raised. Ho contended that, on the basis of tho columns of opinions of business men published in the Press at the time, ho was fully justified in stating that the Prime Minister did undertake not to raise the rate.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/ESD19350927.2.45

Bibliographic details
Ngā taipitopito pukapuka

Evening Star, Issue 22145, 27 September 1935, Page 8

Word count
Tapeke kupu
550

NO EXCHANGE PLEDGE Evening Star, Issue 22145, 27 September 1935, Page 8

NO EXCHANGE PLEDGE Evening Star, Issue 22145, 27 September 1935, Page 8

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