DOMINION POLITICS.

Waikato Times, Volume 112, Issue 18808, 2 December 1932, Page 8

DOMINION POLITICS.

FARMERS’ PROBLEMS. THE EXCHANGE RATE. PARTY TENSION EASES. (By Telegraph.—Press Association.) WELLINGTON, Thursday. Farmers’ problems and Central Reserve Bank legislation were the main topics of discussion by the Coalition caucus this morning, according to a statement made-by the Prime 'Minister, the Rt. Hon. G. W. Forbes, at the adjournment.

Tlie question of increasing the exchange rate did not receive much prominence, at the meeting. Several of those identified with the agitation exchange inflation said they were prepared to abandon the idea of an increased rate if the Government would agree to take steps immediately to assist primary producers. One or two members were outspoken lo the point of declaring that unless the Government did make a move in that direction their efforts would bo used to depose the Minister. However, the obviously friendly mood in which the caucus broke up. after deliberating for nearly three hours, indicated that a frank exchange of views had resulted in the easing of the recent tension in the party. It is reliably learned that a long discussion took place on the question of reducing costs to enable farmers particularly and the community generally to carry on without suffering calamitous losses.

It was agreed that drastic reduction in interest rates was absolutely essential. It is learned 'that the Prime Minister, Mr. Forbes, intimated to the caucus that in his recent conversations with banking interests lie had represented that opinion to thorn. Consultation between the Government and the bankers is continuing. A further conference with the bankers is to be held on Saturday.

It was stated in the caucus that it would probably be found possible to adjourn next Wednesday, December 7, which will mean that tiie period of adjournment will be approximately seven weeks.