CABINET MEETING.

Waikato Times, Volume 112, Issue 18804, 28 November 1932, Page 7

CABINET MEETING.

AIDING THE FARMER

DIFFICULTIES OF EVOLVING PLAN

RESTLESS MEMBERS

WELLINGTON. Sunday. A meeting of the Cabinet took place yesterday, when the two pnncipal subjects for discussion weie th Bank Bill and the evolving of a suhcm ■to assist the farmers through a se -son of depressed markets, the n ter question is causing the the gravest concern, although mo t yesterday’s meeting was dev consideration of the Bank Bi ■ The Prime Minister subsequently said that no decision had yet reached regarding the natuie assistance the Government was . to offer the farmers. He indicated [hat he was not enamoured of the Bank of New Zealand’s proposal of a sub si dj either directly on exports or in rating and taxation relief during the current sG According to Mr Forbes the Bank of New Zealand, in offering to accommodate the Government with a loan of £2,000,000 to be used in assisting the farmers, had not yet intimated the conditions on which the money could be borrowed, apart from stating that “ favourable terms ’’ would be extended. Comment was made by one Minister that the hank was willing to fassist the Government provided the bank was not. called on to make any sacrifice. ... A candid admission that a most cmflcult situation had developed and that extreme care would lie necessary m handling it was made by a Minister occupying ono of the most important posts in the Cabinet. Even the Prime Minister confessed that complete haimony had not prevailed at yesterday’s meeting. The Cabinet will meet again to-mor-row and the Prime Minister expects several further meetings will he necessary before the Government will he in a position to announce a scheme for aiding the primary producers.

Elements of Disintegration. It is. probable that members who presented the memorial to the Cabinet for transmission to the Bank of New Zealand will be invited to confer with ■the Cabinet, probably on Tuesday. That group comprises some members who are determined that substantial assistance must be given to the farmers. One, Mr T. D. Burnett, has even gone to the length of stating to a Timaru audience that he will not continue to sit in Parliament unless appropriate action Is taken. On the other hand, quite a number of those who comprised the deputation !o tire Cabinet on November 1C were not advocates of an inflated exchua-;:. Until members of that deputation meet to consider the bank's reply, therefore. it Is exceedingly difficult to secure an indication of likely consequences politically. There has already been a little wild talk about threatening the life of the Government unless prompt measures are taken. However, although the present situation is admittedly the most embarrassing that has occurred since the Coalition Government-was formed, there have been no developments to date to suggest that the fate of the Ministry Is in jeopardy. Elements of disintegration certainly exist, but there yare still many reasons why this Par'llament should run Its full extended term. Caucus of Party. It is expected a caucus of the Coalition Party will be held during the coming week, probably on Thursday. The meeting will ostensibly be for the purpose of discussing the Central Reserve Bank Bill, hut it is also likely that opportunity will be taken to consider what line should be pursued in helping the farmer to make ends moot until price levels improve, should the Cabinet not have reached a decision by then.

THE ASSOCIATED BANKS.

NO INTERFERENCE INTENDED. WELLINGTON, Saturday. The Associated Banks did not hold a meeting to-day, which is a fair indication that they are in accord with the decision of the Bank of New Zealand not to interfere with the exchange rates. So far no request for such a meeting has come from any individual bank. It is not likely that anything more that a formal reply will be forwarded to the city Coalition members of Parliament who submitted a countermemorial.