IMPROVEMENT IN OUTLOOK

Taranaki Daily News, 13 July 1933, Page 4

IMPROVEMENT IN OUTLOOK

advance in many prices EFFECTS OF HIGHER EXCHANGE. budget POSITION MUCH BEITeR MR. COATES ADDRESSES FARMERS, By Telegraph—Press Association. Wellington, July 12. At the opening of the Fanners’ Union conference to-day the Rt. Hon. J. G. Coates, Minister of Finance, referred to the steps the Government had taken to combat the economic conditions. He devoted considerable attention to Lie question of exchange rate, and quoted a cablegram he had ..received from t.te Rt Hon. G. W. Forbes, Prime Minister, in which the latter expressed the opinion that experts and authorities in London agreed that New Zealand had followed the only course under the circumstances. ... . Mr. Coates said much of the criticism being expressed in cablegrams frem London could be discounted as it was contrary to fact. By increasing exchange to 25 per cent, the Government had increased the prices of exportable com—, modifies by 15 per cent. Although a fall in prices had resulted since January, there were signs now of a general improvement, and he felt confident that fanners would reap the full benefit of the exchange manipulation. Dealing with the derating of farm lands, Mr. Coates said he was definitely opposed to any suggestion of complete derating. That was absolutely impracticable. He realised farmers were entitled to some relief in rates, but he could not believe that farmers generally desired to dodge the obligations that had to be met by other sections of the community. ' . Mr. Coates said the Budget outlook had improved to the extent of £1,000,000 since January, and instead of the anticipated deficit of £4,500,000 it appeared that the deficit this year would be £3,500,000 at the outside, and he was still hopeful it would be possible to improve that. Mr. Coates concluded by referring to the encouraging signs in the general economic and trade outlook, and he expressed the opinion that farmers had iStore reason to hope now than they had a few months ago.