DEFINITE ACTION REQUIRED

Rotorua Morning Post, Volume 2, Issue 393, 30 November 1932, Page 4

DEFINITE ACTION REQUIRED

Although the Government is placed in an exceedingly difficult situation with regard to the exchange situation, it is time that it removed the prevailing uncertainty and indicated what attitude it proposes to adopt. There is no doubt that this uncertainty is having a marked eifect upon trade, particuiarly with the husy Christmas season imminent, and the Government will perform a service by relieving traders of their anxiety in this matter. The effect of this development is even more unf orj tunate than that which attendl ed the deliberations of the OtJ tawa Conference. Businessmen, j naturally, are reluctant to enter upon .committments until they are reasonably certain of I the Government's intentions and ! some official statement should immediately be issued which will clear up the position in one way or another. The country should ! be informed whether the proposal has been disposed of by j the refusal of the Bank of N.Z. I to raise the exchange rate. The 1 Prime Minister has stated that | the question is entirely one for ! the banks, but it cannot be alj lowed to rest in its present un- ; satisfactory position. The exj change inflationists are obvious- : ly far from reconciled to the j attitude taken up by the Bank ' of New Zealand and in view of the Government's inactivity, I businessmen are left in the dark ! as to probable future developI ments. The Associated Banks | have not yet definitely indieatec. ! their attitude although they apparently propose to follow the lead given by the Bank of New i Zealand. If the Government i proposes to allow the matter to j rest at that, it should say so j and allow people to get on with their business. This does: not, | however, dispose of the origina. question and provide the relief so urgently required by the primary producer. In an endeavour to alleviate the position, several proposals have been hiade by the Bank of New Zealand directors, fout here again, the Government has given no indication of its attitude. It is plain, however, that the question must be treated as an emergeney and definite action in one direction or another should not be delayed. It is true that the measures suggested may be taken largely as

palliatives, but as palliatives necessary to relieve the: position in the meantime. It is for the Government todetermine which of the proposals submitted, or what combination of them, is likely to afford the most immediate results and act accordingly. When temporary relief has been afforded,- it will be time to evolve a definite policy designed to endure.