GAUGUS OF THE COALITION

Taranaki Daily News, 1 December 1932, Page 5

GAUGUS OF THE COALITION

IMPORTANT DISCUSSIONS

PLANS TO ASSIST FARMERS

CENTRAL RESERVE BANKING

WHOLE CABINET TO ATTEND

(By Wire-Parliamentary Reporter.) Wellington, Last Night.

All sections of Coalition members are anxiously awaiting the Government caucus which is to be held at 10.30 tomorrow morning. This is the first caucus which has been called since the early days of the session, and it may prove to be of considerable importance in determining .the outcome of the agitation for assistance for the primary producers which has lately arisen in Parliament. As the Prime Minister has already stated, the provisions of the Central Reserve Bank Bill will be placed before the meeting, and discussion will be taken on the general financial position. Two senior Ministers, Mr. J. G. Coates and Mr. E. A. Ransom, are expected to return to Wellington to-morrow morning from the Motueka electorate, so that there will be a full attendance of members of the Cabinet at the caucus. It is not yet known whether the Cabinet has been able to prepare a definite plan of assistance for the farming community or whether, if such a . plan has been prepared, it will be available for discussion by the meeting. It is certain, however, that those members of the Coalition who have been pressing for action will not lose the opportunity of re-emphasising their demands, and consequently the meeting may resolve itself into a free discussion of ways and means of rehabilitating the farming industry. 4 While this group of 30 Coalitionists is satisfied with its initial success in calling the attention of the Government and of tho country to the pressing needs of the farmer it is by no means prepared to let the question drift on unsettled, and regards it as the Government’s duty to present a scheme of rehabilitation in the near future.

On the authority of one who is in close touch with the working of the Cabinet it may be predicted that- the caucus will be one of great significance. It is expected that aS the outcome the Government will be in a position to decide exactly what legislative proposals will be brought down this session and whether the necessity exists for calling a short session before the end of the financial year.

It is difficult to determine just how much prominence will be given to the exchange issue until the caucus views are expressed. It has been suggested seriously that the Cabinet will be urged to legislate in the direction of ensuring the raising of the exchange rate, but it is considered by many that the Government would be very reluctant to make any such move. A measure of support is also likely to be forthcoming for a scheme for inflating the currency, but here again it is difficult to assess the amount of encouragement likely to be given to such a pdlicy, which many regard as one of panic. The improvement in the butter market during the past few days has resulted in some members revising their estimate of the gravity of the crisis. It seems possible that the general disposition among Government members Will be to - give the Cabinet a full opportunity for considering the whole position with a view to placing its ' proposals before the House early next year.

The Prime Minister has already indicated that he believes the interest rate burden must be eased, but it is difficult to secure any definite information as to the precise extent of the policy which the Cabinet believes should be adopted in bringing about a reduction. It does not seem likely that the Cabinet will present any definite, policy at to-mor-row’s meeting, but it is certain that the views expressed will have an important bearing upon the moulding of the Government’s policy for meeting the situation.