PROMISING OUTLOOK.

Manawatu Standard, Volume XLIV, Issue 1179, 29 November 1924, Page 12

PROMISING OUTLOOK.

MR MASSEY’S COMMENTS. THE EXCHANGE PROBLEAI. “I do not wish to discuss public questions just at present,” said the Prime Minister with a deprecatory smile to an Auckland interviewer. “You know I am supposed to be having a rest and change away from all that pother.” Air Massey chatted informally, however, on the hopeful complexion which the season and markets had put on rural affairs. “I was chaffing one farmer about the wealth coming to him from his wool clip,” said Mr Massey, “but be reminded me that four years ago lie had to quit it at SRI per lb. This year’s result would only help to recoup him for that. It must not be forgotten that good years have to be set against bad before deciding that the sheepfarmer is making liis fortune.” The season had also opened well in the production of luitter-fat, and the markets promised well for lamb, mutton and wheat. Farmers would need it all, however. The great difficulty on land to-day was finance. The exchange position complicated matters by tying up large sums in London. It was a very difficult problem, and the solution was hard to find. Matters were not helped by the large account New Zealand was running with Australia. About a million pounds had to be paid for wheat from the Commonwealth, apart from importations of coal, oats, chaff and the usual produce lines. So far as the Government was concerned, the. revenue was keeping up well. Advances to settlers were being proceeded with at brisk rate; in fact, tho Department had .its hands full with business. A proportion of the sums lent were for paying off mortgages affected by the moratorium, hut not all by any means. The loan of five millions raised in London for advances was available, of course, but a good deal would be lost by its transfer to New Zealand at the present time. The Advances Department had been empowered to draw on the loan, but so far as lie knew this had not yet boon necessary. The sum of £],- 125,000 lent by the. Bank of New Zealand had added to the funds available locally.