NO MORE BORROWING

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 6

NO MORE BORROWING

GOVERNMENT’S POLICY WRITING DOWN CAPITAL (Parliamentary Reporter.) WELLINGTON, this day. It was made clear by the Rt. lion. G. W. Forbes to-day that it is not the intention of the Cabinet to- invite representatives of the rural section in the House tu confer with it in its search for a solution of the -present difficulties facing primary producers. Mr. Forbes said the problem bristled with complexities, it being realised that the task facing any scheme was the bridging of a gap of 51 per cent, which existed between export prices and internal retail price levels. Although Ministers generally are reticent on this point, there, is a growing belief that before the country as a whole can obtain permanent relief a process of wholesale writing down of capital, involving widespread reorganisation. will have to be undertaken, in conjunction with a similar readjustment of external debt charges. TTow far the Cabinet is prepared to give an early lead on any of the issues entailed in tho rehabilitation programme, cannot be conjectured upon at present, but it is believed that the. Cabinet has set its face- resolutely against any further borrowing. either internally or on the London market. One important factor which has been, it is understood, prominent in the Cabinet discussions on the farmers’ position is the effect- of anything which might be done to raise prices might have on other Dominions arid on Britain. -The spirit of the Ottawa conference was in the direction of raising price levels, and it considered that joint Empire action, rather than individual Dominion action, must he the kevnote.