Coates Defends Exchange

Manawatu Times, Volume 60, Issue 249, 22 October 1935, Page 7

Coates Defends Exchange

Big Meeting at Masterton

Per Press Association. MASTERTON, Last Night. The Minister of Finance, Et. Hon. J. G. Coates, addressed a bumper meeting in the biggest available hall to-night. The building was crowded to the doors and hundreds were unable to get in. The Mayor, Mr T. Jordan, presided.

There was at times a fair amount of interjection and noisy interruption, but it came from a very small minority. The Minister turned the interruptions to good account in pleasant exchanges and in driving homo his points. On concluding he answered many questions and then was accorded a hearty voto of thanks with loud applause and no indication of dissent. Dealing with tho problems of the past four years Mr Coates said the plan and method adopted by the Government wero not hastily or ill-con-ceived, but were clearcut and defined. As a result of the enforcement of the Government’s pfau they were now getting the equilibrium that was necessary to balance expenditure and revenue. No enterprise, public or private, could continue for long if tho expenditure exceeded the income. A serious fall in prices had brought about an unstable economic position and had resulted in a very largo number of men and women losing their employment. Unemployment was a social concern and as such had received different treatment from other problems facing the Government. One of the first things tho Government did in its endeavour to increase the revenue was to raise the exchange rate on London by 25 per cent. That had effected an increased income for products both internally and externally" and had also brought about an adjustment 'of costs and prices. Discussing who paid for tho raising of the exchange, Mr Coates said 10 farmer and the city man. Everyone paid for it. The Government had figured it out that costs would not rise with an increased exchange and subsequent events proved it had figured correctly. “Aspirants for political honours, Mi Coates went on to observe, “have described tho financial experts as ‘the brain trust.’ Call thorn what you like, they arc men who have given their time and ability wholeheartedly to tho difficult task of sorting out the data to ensure that any pitfalls that might havo been in tho Government’s proposals might bo fully understood and appreciated before any definite action was takeu.’’ Ho knew nothing of the politics of tho "brain trust and questioned tho decorum of Mr Hislop in accusing them of being Socialists. They were men who had given tlicir time and ability ungiudgingly and often had worked tho whole clock round in eliminating weaknesses that otherwise might havo entered into the Government’s proposals. Mr. Coates said tho Government s four-year plan had worked out to tho satisfaction and credit of the country. Sacrifices had been made by all classes and the conditions wore now improving. It had been said.the Final Adjustment Act involved the breaking of contracts. That might be so, but lie held that in times of stress tho people and the country must conic first. They would not let human beings suffer to a point where they bec'amo depressed and lost hope in the future. The worst of the storm was past. lhey had balanced the Budget and the credit of the country in London stood as high as ever it did as was evidenced by the ease with Which, tho last New Zealand loan was floated. The present indications of reviving confidence and recovery made it clear that the people of tho Dominion had confidence in the Government that had pulled them through. Mr. Coates criticised the Democrat party proposals at length, reiterating his charge that these proposals would entail an expenditure of 522,000,000 a year over and above the present Budget. He could not understand the people being gulled by the kind of guff the Democrats had submitted. Mr. Coates also asked what had caused Mr. Hislop to ebango tho opinion he expressed only a i'ow months ago that the Mayor of Wellington had not time to engage in general politics. The Minister claimed that the Government liad carried out the only policy that made recovery possible with good results that could be expected to continue short of any international upheaval. He reviewed the meat negotiations at length and denounced a 3 most unfair and inaccurato tho allegation that Now Zealand had failed to honour the Ottawa agreement. He touched on the Government proposals relating to national superannuation, health, insurance, housing and other matters. Tho Government, he said, just asked for fair consideration, taking account of the manner in which the difficulties pf the country had been dealt with and its programme of a steady forward movement in the development of the country.

The Pahiatua Seat

MR. K. J- FRANKLIN WITHDRAWS

Mr. lv. J. Franklin, sheepfarmer of Porangahau, who last week announced his intention of contesting the Pahiatua seat as an Independent, has decided that “owing to unforeseen circumstances he is compelled to withdraw from the contest.” This leaves three candidates at present in the field: Sir Alfred Ransom, present member for Pahiatua and the National Government candicfate; Mr. B. A. Gower, the Labour candidate, and Mr. D. H. McGhie, -who is standing in the interests of the Democrat Party.