IMPROVED CONDITIONS

Waikato Times, Volume 115, Issue 19202, 12 March 1934, Page 6

IMPROVED CONDITIONS

MR COATES OPTIMISTIC

THE WORLDS MARKETS. INCREASE IN PRICES. AUCKLAND, Monday. The Minister of Finance, Rt. Hon. J. G. Coates, when addressing the public at the official opening of the Kumeu Agricultural and Horticultural Show on Saturday, said he could see a decided improvement in the world's markets and honestly believed that it would not be long before the farming community would see the sun shining upon the somewhat rocky road which they all had to travel. He remarked upon the greatly improved prices for wool, and also for mutton and beef. Ho had great hopes of the conference arranged among the leaders of the dairy industry to be held in Wellington to-morrow. It was essential, he said, that the industry be placed upon a paying basis. “ The establishment of the Reserve Bank, and the issue of our own coinage,” said Mr Coates, “are part of our growing feeling of nationalism as New Zealanders. “ The necessary steps for the establishment of the Reserve Bank are now in hand. The flotation of capital was an outstanding success. As a result it is definitely assured that the roots of the Reserve Bank will be deeply imbedded in every economio activity of the Dominion and tiiis itself will go a long way toward making the bank a truly national institution. “ I-t is, of course, vitally important that it should be a national institution acting In the best interests of the people as a whole, for its function is broadly to exercise conscious and deliberate control over our monetary system, a matter that vitally affects in one way or another everyone in New Zealand. Reduction in Interest. “ One function which the Reserve Bank will exercise is the limitation of interest,” continued the Minister. “ 1 think that I am safe in stating that from now on you will see a gradual but steady reduction in the rates of interest, especially to the farming community. This will result in vastly relieved conditions, with the eventual result that the farmer will find himself once more engaged in a payable industry.”

Touching upon the New Zealand issue of silver coinage, Mr Coates remarked: “As a separate member of the British commonwealth of nations it is only right that we should have a distinctive coinage, and it is worth noting that there will be a relief to the general taxpayer by reason of the very handsome profit from the coining which will go into the general accounts of the Treasury.” Better Times for Farmers.

Mr Coates repeated bis earlier statement that the dairy industry conference this week would undoubtedly produce better times for the farmer if it tackled the problem of supply in a systematic manner.