"PATIENCE."

Auckland Star, Volume LXIV, Issue 4, 6 January 1933, Page 5

"PATIENCE."

CABINET'S PLANS.

LEADERS' REQUEST. NO PREMATURE PUBLICITY. EXCHANGE QUESTION. (By Telegraph.—Special to "Star.") WELLINGTON, this day. The leaders of the Government do not wish any partial disclosures and public discussions of the measures which Cabinet may decide to adopt to meet the economic position. Both the Prime Minister and Mr. Coatcs have shown a desire not to be questioned daily as to the progress made in Cabinet discussions. They fear that partial disclosures ■ and public discussions before Cabinet has made final decisions .rould have an unnecessarily unsettling effect on the public mind. In supporting the Prime.Minister's request for "patience," Mr. Coates declared: '•The best interests of the Government, the country and Parliament will be served by the Press refraining from continuous questions—perfectly legitimate though they may be—until such time as the Prime Minister is prepared with a full statement of the Government's views. Information on routine Departmental or Dominion questions, outside the scope of the present investigation, will be readily available, but I do think more harm than good is often done by partial publication, or surmises which may be shots in the dark." All Expedients Considered. Intense interest is naturally being aroused in the programme which the Government hopes to present to Parliament as the State's contribution in easing the economic pressure, particularly on the farming community. It can be taken for granted that every expedient has already received much anxious thought from Ministers, whose task it is now to apply the most practical remedy within the limits of financial resources. The raising of the exchange rate is again being discussed outside Cabinet circles, as being the easiest plan for relief, but banking opinion sounded by the "Star's" correspondent was found to be the same as on previous occasions when the question was raised. The banks contend that exchange rates are based on supply and demand, the banks being buyers and sellers of a commodity, which in this case is transferable credit. Any interference at the request of Parliament would not produce effective results, save with the concurrence of the banks trading in the commodity, and if they were agreeable under this pressure to fall in with the plans of the high exchange advocates, it could only be on the condition that the Government would indemnify them against possible losses through purchasing at an artificially high rate, but, being unable in their turn to sell the acquired credits on equally good terms. This would involve the State in a liability of indefinite extent. Economists' Report. Cabinet within a few days will receive the completed report of the economists who were asked recently to bring up to date their survey of the factors in the situation. A Cabinet t eetlng was held yesterday morning, and it was resumed last night. All the Ministers were not present, the Hon. A. Hamilton, Minister of Labour and acting-Minister of Employment, not having arrived. He expects to be able personally to investigate mining developments in Central Otago, which have been such a promising field for relief •workers' employment, and to be able to report fully on the situation to the Government.