ACCEPTED

Rotorua Morning Post, Volume 2, Issue 435, 20 January 1933, Page 5

ACCEPTED

("Post" Special Commissioner).

break def1nite GOVERNMENT ANNQUNCES THAT EXCHANGE RISES 25 PER CENT THE MINISTER'S EXPLANATION

x Wellington, Friday. After a lengthy Cabinet meeting the Prime Minister, the Rt. Hon. G. W. Forbes, announced, early this morning, the resignation of the Hon. W. Downie Stewart, and the decision 'of the Government to raise the rate of exchange 25 per cent. Mr. Forbes expressed his personal regret at the resignation of so valuable a colleague as Mr. Stewart, paying special tribute to his attainments and his ability which peculiarly fitted him for the Ministerial position. He expressed the hope that his personal friendship with Mr. Stewart would continue to the end of the chapter. The Prime Minister released for pnblication a copy of Mr. Stewart's letter forwarding his resignation. In this Mr. Stewart said: "I regret to • say that I find myself not in accord with the proposal of Cabinet to get the banks to raise the exchange rate and to indemnify the banks against any loss which may accrue in carrying out this policy. I feel it my duty to resign my portfolio and ask to be released from office.* "I need hardly say that I xealise the difficulties with which the Government is faced, and that it is the duty of each Minister to do his best to harmonise his views with those of his colleagues: You may remember that last year I subordinated my view on the question of the statutory reduction of interest and on certain questions of taxation in order to agree on a common policy, bnt it is not feasible to repeat this line of action on so important a question as that of exchange. My continuance in the Ministry, would, therefore, be a source of embarrassment and not a help to the Government." Mr. Stewart asked to be released from his duties immediately. In announcing the Government's decision on the exchange issue, Mr. Forbes said that the Government recognised the far-reaching nature of the decision which had been taken. The position of the Dominion to-day, and the sad plight of so many of our citizens, rendered it imperative that a measure of relief should be immediately forthcoming.