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Hokitika Guardian, 3 February 1931, Page 4

lira nature of the Prime Minister’s remarks at Christchurch, combined with the statement of the case for the farmers by the deputation which waited on Mr Forbes at "Wellington subsequently. indicate that the plight of tlie man on the land due to produce prices falling, is serious, and is rellected grievously on the conditions of the country. The. financial effect is ! emphasised further in the increasing I rates of exchange, which are not readily accounted for at the moment, mid it is not surprising to find the nictropositan press asking for pome public oxj:ffianu.iK>n by t.lu; ban King instil tutions.. Mr Forbes as a farmer himself, can see the effect of the drop in produce prices, and his sympathies will no doubt be with his co-workers. As a result of the deliberations now proceeding in Cabinet, the definite announcement to be made will no doubtreveal a policy of drastic retrench, mont. It is to be expected that the national finances are not too robust, this has been hinted at plainly, and with the falling revenue, the chances of recovery at the present rate of expenditure are certainly remote. A very drastic overhaul may be anticipated, for if tlie country is drifting to a serious deficit, remedial steps must be taken before it is too late. The Government is being urged to borrow internally to belli tide over the unemployment problem, and something may bo attempted in that direction. But if a loan is to be raised, it should be on a loyalty basis with reduced interest rates for the good of the national credit. At a time like the present, with matters pointing to a serious issue, the Government is hound to take the pconk* into the fullest confidence. Mr Forbes lias acted in that way previously, and will doubtless do so again. Onlv hv bringing tlie public to a clear understanding of tlie nature of the drift going on, can the country hope to rehabilitate itself. The reformation lias to come from within, and must be undertaken in good heart with the will to succeed. Criticism in itself will not be of value. There must he united co-operation to support the policy of the Government in the action thought best, after a close analysis of the Dominion situation and immediate prospects.