NO DISSENSION

Evening Star, Issue 22274, 27 February 1936, Page 10

NO DISSENSION

CABINET A UNITED TEAM RUMOUR OF DISAGREEMENT OH FINANCE DENIED [Per United Press Association.] WELLINGTON, February 27. Humours of strong dissension in Cabinet, which have been circulating freely here, were given publicity in a northern country newspaper, but are emphatically denied by the Prime Minister, whose attention was called to the matter. According to outside reports there have been marked differences of opinion on the major question of control of curreiu— and two at least of the dissenting members of Cabinet were said to be the Minister of Finance (Mr Nash) and the Minister of Education (Mr Fraser). The allegation is that these Ministers favoured a large compulsory loan internally at low interest, which, however, would undermine the whole monetary platform enunciated by the Prime Minister prior to the election, but that Mr Savage bad made it clear that his policy would be carried out in its entirety even if it meant a reshuffle of portfolios to enable this to be done. The Prime Minister, in an interview with your correspondent, said he also had heard rumours from outside of Cabinet dissension, and this he would deal with, though he would not allow tho rumours to force a premature disclosure of the Government’s financial policy. ' : “ This,” he continued, " will have to be explained as a whole. If we start now giving bits of it that would be a most dangerous thing, and if you placed a wrong interpretation on it that would be my fault.' My job*is to produce the whole policy, not part of it, and it is obvious to anybody that the people’s representatives in Parliament will be entitled to see this legislation first, and have the opportunity of analysing it. I made more than one promise to the people whom I took into my confidence before the elections. I am not going to betray that trust in any shape or form. The members of the Cabinet have worked splendidly as a team. They have lived up ‘to their promises, every one of them, and have carried out every request I have made to them. One could not get a better team anywhere, and it is important to remember that this was not a team hurriedly organised when the electors gave us the opportunity in December. We bad been a team long before that, for we have worked together for the greater part of our lives. Wo want the people to be with us all the way; to realise that, however unorthodox our policy may appear to be, we are anxious to move with them, and that oiir mission in life _is_ not to destroy, but to build up their interests.” TREASURY BILLS FOR £11,000.000 A CIRCUMSTANTIAL RUMOUR Speculation on the probable form of the Labour Government’s financial programme took a new turn yesterday (says the ‘Press’), when private advice was received in Christchurch from what is known to be very good authority that the plan involved the raising of £ll|ooo,ooo by the issue of non-interest-bearing Treasury bills to the Reserve Bank, the bills to have a currency of one year. As the message was received in Christchurch the issue is to be made " against guaranteed prices.” but this seems to be a trifle meaningless. Colour is lent to, the authenticity of the suggestion by the many statements of Labour Government officials both before and since the elections, and the country has been in some measure .prepared for an issue of credit in some way other than through borrowing abroad or at home. The rumour is taken to involve the transference of the ownership of the Reserve Bank to the Government, another development which would not be altogether unexpected.