PLIGHT OF THE FARMER

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 5

PLIGHT OF THE FARMER

SEEKING A REMEDY

CABINET’S ACTIVITIES

MANY POINTS TO CONSIDER

(Parliamentary Reporter.) WELLINGTON, this flay. “We are deeply impressed with tho plight of the farmer and the Cabinet is unanimously sympathetic to him, but wo.-want to be sure that we have something more .than a palliative. We are seeking a sound remedy, and there is one other thing we have to hud the money.” > In these words the Prime Minister, the Rt. Hon. G. W. Forbes, summarised the Cabinet’s deliberations on the reply of the directorate of the Bank ot Now' Zetland to a request which was made to it by a section of the Coalition members for an artificially high exchange. Mr Forbes made it clear that no decision had been reached by the Cabinet a 9 to what the next move would be. He indicated that every angle of the situation had been considered, and .that not only had the alternatives, the bounty scheme and the suggestion of t'he 'bank •directorate that farmers’ rates and land tax should be paid by the. Government, received consideration, but other possible methods of .assisting primary producers had bl under review. ! . . It was learned that the objective of , the Cabinet is to find a scheme which ; -will afford relief to the farmer in such a wav that no one section of the country will bo penalised. The idea underlying the whole of the Cabinet discussion was that any scheme adopted would have to have the merit of putting money into circulation, so that it would be of benefit to the whole of the community. SIX HOURS’ SITTING The greatest difficulty to be overcome it is considered, was to prevent any * assistance granted to farmers merely being used to reduce their accounts and so find its way back .to the banks where it would once more become frozen. “We realise the importance of the problem, and there will be many more Cabinet meetings in the next flew day*;” said Mr Forbes. He was speaking at the conclusion of a six hours’ sitting, during which he said only two subjects, the plight of the farmer and the central reserve bank, wore under discussion. He made it clear that the Cabinet did not consider that the two questions were intertwined, but both were considered to be of major importance at the present time. One of the grout difficulties winch the Cabinet has to face in arriving at some scheme wliich will »be of benefit to the farmers is that the limit of the taxable capacity of the country has been reached to all intents and purposes. This already has been made noticeable to the Government, for the Prime Minister said recently that the sources of taxation were drying up. There are some members of t'he Cabinet who do not subscribe to this view, pointing out that taxation is much heavier in Australia than in New Zealand, but it is believed -that the Ministry has, tor the time being at any rate, accepted the principle that it is not possible to impose any more taxation. MR STEWART’S VIEWS Tt is gathered .that a considerable amount of time was spent at the Cabinet meeting discussing the views o. the Hon..W. Downie Stewart, Minister of Finance. It was the first Cabinet meeting whiefh Mr Stewart has attended since his return from Canada and England, and the information which he gathered abroad on both central banking and the question of price levels, particularly in their application to primary producers, was placed before his fellow Ministers. The Secretary of the Treasury, Mr A. D. Park, who accompanied Mr Stewart to the Imperial Conference and to England, was present during the Whole of the Cabinet meeting. Mr G. C. Rodda, assietant-Secretary, who has been in charge during Mr Park s absence, and is thus in possession ot the fullest information as to the internal financial position of the Dominion, was also present. It is unlikely that a decision as to which course will be pursued will bo reached for some days, as immediately after the Cabinet meeting the Rt. Hon. J. G. Coates and the Hon. E. A. Ransom left by steamer for t'he Motueka electorate, where they will spend the next four days assisting the'Coalition candidate, Mr K. J. Holyoake. In the • meantime, members of the Cabinet will further discuss the proposals which have been before them, and it is likely that at the first full Cabinet meeting after these two Ministers return from Motueka an important announcement will be made.