STERLING DECLINE

Waikato Times, Volume 125, Issue 20862, 21 July 1939, Page 8

STERLING DECLINE

810 CREDITS DISSIPATED CRITICISM BY MR COATES ALLEGED “CONFIDENCE TRICK” (By Telegraph.—Special to Times) WELLINGTON. Thursday The depletion of the sterling funds and the restrictions on imports were two subjects discussed by the Rt. -Hon. J. G. Coates (Opposition—KaiPara) in the House of Representatives tonight. No Government, he said, had ever assumed office under more favourable conditions than the present administration, for it had ample overseas funds and State departments were in credit. The Minister of Finance is now in London trying to make the best deal

he can,” Mr Coates continued. “I feel very sorry for the Minister and would not like to be in his shoes. I wish him every success, hut it is a sorry spectacle to find in three short years credits dissipated to the extent of £71,000.000.” Mr Coates said that Government speakers had repeatedly stated that financial gangsters were responsible for the drop in the London funds. They had implied that the Opposition was responsible, but if it were correct that the funds had been raided, what was the Government doing? Currency Blacklisted “The blacklisting of our currency is something that cannot be denied,” Mr Coates continued. “If anyone offered the Prime Minister a Bank of England £5 note, or even an Australian note, I cannot imagine that he would refuse It, hut would an Englishman accept a New Zealand note? Notes may not circulate outside the country of issue, but when the currency is healthy they certainly exchange.” Difficulties imposed on importers and others by the import restrictions were referred to by Mr Coates, lie said that the decision of Mr Justice Lallan was one of the most courageous judgments ever given in this country. The Minister of Defence, the lion. F. Jones: Why courageous? 'Mr Coates: For this reason. Y'ou w’ill -find that Judge Callan has gone to meticulous care to point out the constitutional rights that should guide a Government. Mr Jones: That’s his job. “Cannot the Government realise* that this country is in the most serious difficulty it has been in for many years, including the slump period?” asked Mr Coates. "Do members of the Government realise that their insulation theory has brought us to the brink of bankruptcy? It is a desperate situation and the one retribution is that the Government should have to put it right. “Confidence Trick” Played “The Prime Minister played the biggest confidence trick ever played on the people of this country before the last general election,” said Mr Coates. He accused the Government of withholding vital information and concealing facts that should have been made public, and said that the Government would never have been returned to power had the true position been made known. “The Prime Minister refuses to believe that there has been a fall In huttenfat production of 18,000 tons,' Mr Coates continued. "In two seasons there has been a fall of 18.2 per cent. Is it correct that the dry weather has been responsible for this?” Government voices, in chorus: Yes. Mr Coates: Then how about a fall of 80.000 in productive cows in New Zealand ? “The real facts are that increased costs on farms had the effect of farmers reducing herds to the point at which they can be handled by the family,” Mr Coates added. "Jf that is wrong, how do honourable members account for a fall of 6 per cent in the previous excellent season?” The Rt. Hon. C. W. Forbes (Opposition—Hurunui, : They will say it was too much rain. Mr Coates: Costs have caught up with the farmer, the man responsible for the principal production of this country.