The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, MAY 3, 1934. STANDING FIRM.

Hokitika Guardian, 3 May 1934, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, MAY 3, 1934. STANDING FIRM.

'The Minister of f inance continues to .stand firm on ; t!ie exemuige issue' despite the continual barrage from many i.jiuiential quarters’ m opposition. It "'Ol he remembered that aV tile outset there was a division in the Cabinet on the question, resulting in fui open breach, and Mr Dmvnie S’thwavt, who was considered such a tower of strength to the Ministry lesigried. Mr Oaiites, however, was confirmed in his attitude and elected to pait with a popular and respected colleague, and take up the threads of financial control himscif. It was a n important decision to make, for Mr Coates had not the experience of the post, nor did he enjoy the confidence of the people as to his ability to carry on. Yet, in spite of the disabilities under which lie assumed the important office, he has; continued to carry on and maintained a policy which he believes was the best. In other directions, notably the Reserve Rank proposal, he was also' adamant against the critical reception accorded the movement, and he lias seen the principle'adopted in a very whole hearted manner. The Bank will lie functioning shortly, and it would appear - Mr Coates is confident good results financially will accrue to the Dominion thereby. A commencement has been made by selecting the principals of the Bank stall’ on a high plane, and no reproaches are to he heard .in that respect. The Minister is looking to the Bank helping the country out of the exchange liability at present incurred, by utilising the funds to the national advantage. Again, despite the hopes of various sections a ml much criticism on tl>e subject, Mr Coates holds out very little hope of a reduction in the exchange rate, which is to be retained practically at the present premium for sometime. Tn addition to the important issues relating to high finance connected with the control of exchange ami the launching of the Reserve Bank successfully, Mr Coates has made an important .statement in regard to : the control of dairy produce. This is now virtually under State control but the policy is not revealed as yet. Mr Coates has leaned towards a quota restriction as a moans to an end for some time, and lie still is of that frame of mind. The proposals for control are not yet indicated, hut it would appear a drastic change is necessarv if a betterment is to lie brought about. For too long the export trade has been allowed to drift along hoping for prices from seasonal or other inherent causes improving. But, tb n hopes haio Been doomed to disappointment,. The hnomethods <cannot (■'’ntinue indefinitely in such a hopeless view, and Mr Coates states the Government is bent on a definite change. It is in(im:)led that it will he a radical 0"e affecting flic industry within and without. hut ’till the concrete proposals are brought clow'll there is net any .advantage in speculating on what mi<dit he proposed. The Minister is showing a reasonable attitude with Britain. That is \jiuiU'might he exnoct.ed.. Retain has jhb'bii'our best customer, and there can he no advantage in estranging tile good feeling of intercourse on tlio good' fool Jogs ol intercourse on which the dairying interests el the country have been iiuilt up. Although

ircsli markets are spoken cf, Now Zealand will continue to look to the United .Ivinguom .as its best niarnet. Excellent shipping is available for that trade, and it should not be disorganised unnecessarily by any foolish talk or action within the Dominion, it is a time and occasion for diplomacy, and Mr Coates has indicated tlie rigm line of action. It is clear lie has the capacity to stand firm when necessary and tilut is a nselui asset for sound leadership.