THE BRIGHTER OUTLOOK.

Horowhenua Chronicle, 12 July 1933, Page 5

THE BRIGHTER OUTLOOK.

MR COATES SUMS UP. EXCHANGE BENEFITS EXPORTS. OPPOSITION TO GENREAL DE-RAT-ING OF FARM LANDS. BUDGET POSITION IMPROVED BY £1,000,000. (By Telegraph—Press Association.) WELLINGTON, Wednesday. In opening the Farmers' Union conference to-day, the Rt. Hon. J. G. Coates, Acting Prime Minister, referred to the steps, which the Government had taken to combat the economic conditions He devoted considerable attention to the question of the exchange rate, and quoted a cablegram which he had received from the Rt. Hon. G. W. Forbes, Prime Minister, in which he expressed the opinion that the experts and authorities in London agreed that New Zealand had followed the only course under the circumstances. Mr Coates said that much of the criticism which had been expressed in cablegrams from London could be discounted, as it was absolutely contrary to fact. ■ By increasing the exchange to 25 per cent, the Government had increased the price of exportable commodities by 15 per cent. Al- . though a fall in prices had resulted stince January, there ■were signs now of a general improvement, and he felt confident that the farmers would reap the full benefit of the exchange manipulation. Dealing with the question of derating of farm lands, Mr Coates said he was definitely opposed to any suggestion of complete de-rating. That was absolutely impracticable. He realised that farmers were entitled to some relief in the matter of rates, but he could not believe that the farmers generally desired to dodge an obligation which had to be met by other sections of the community. Referring to the Budget position, Mr Coates said that the outlook had improved to the extent of . £1,000,000 Since January, and instead of the deficit of £4,500,000 which had been anticipated, it appeared that the deficit this year would be only £3,500,000 at the outside, and lie was still hopeful that it would be possible to improve on that. Mr Coates concluded by referring to the encouraging signs in the general economic and trade outlook, and expressed the opinion that farmers had more reason to hope now than they had a few months ago.