DOMINION PARLIAMENT

Waikato Times, Volume 112, Issue 18805, 29 November 1932, Page 2

DOMINION PARLIAMENT

CABINET MEETINGS.

FARMERS' DIFFICULTIES.

BANKERS CALLED TO CONFERENCE WELLINGTON, Monday. : The Cabinet had two long meetings .to-day. Representatives of the six trading banks were called into conference at the afternoon sitting anil the Prime Minister, the Rt. Hon. G. W. Forbes, said subsequently that ‘.‘quite a satisfactory talk” had taken place regarding the financial situation generally and the proposal to establish a central bank in particular. Mr Forbes said that although the Central Bank Bill and plans to assist the farmer were the two principal subjects discussed by the Cabinet today, it should not necessarily be assumed that the two questions were Intertwined. lie stated that it was not intended that the passing of the Central Bank Bill would solve the immediate problem of assisting the farmer. It was unlikely that the central bank would be functioning until about a year's time, as the establishment of a new banking Institullon was necessarily a complicated task and no thought hail yet turned toward the choice of a governor. As far as lie could see at present, It" was unlikely that the Cabinet would bo able to announce its plan for assisting primary producers until Thursday. A caucus or the Coalition parly would lie held on that day to consider the Central Reserve Bank Bill and suggestions for enabling farmers to carry on during the present sCason. The Cabinet would be only too pleased to confer with members of the party who had interviewed the Cabinet almost a fortnight ago to suggest alternative methods whereby farmers could be assisted. Asked what views the Cabinet held regarding the schemes propounded by the bank, Mr Forbes said the Government could consider their adoption only as a last resort, Whether the Government should borrow money for purposes suggested by the bank was a policy matter, which had not yet been decided. There has been some suggestion in the lobbies among Coalition members that the Government might be inclined to try the Paterson scheme adopted In Australia to ensure for the dairy fanner a guaranteed price on his exported produce. However, Mr Forbes said such a plan would not be practicable' In New Zealand, where 80 per cent of Die dairy produce was exported.