DOMINION’S FUTURE

Hokitika Guardian, 31 October 1932, Page 4

DOMINION’S FUTURE

AND THE OTTAWA AGREEAIENT,

AN ADDRESS BY AIR COATES. .

(Per Press Association — Copyright.)

AUCKLAND, October 29

Tile Hon.-, J. G. Coates addressed a meeting of -residents at Pukekohe last night on the Ottawa Conference. Re-

viewing its achievements, h e said that the object of the agreement was to raise tne price level of our commodities. If the level was not raped, lie failed to see how we wer e te go on.

I It was thought by some that prosj pexity could be secured by some won- - derful manipulation of the financial .system. This matter had received close attention, and Britain had declared that she would provide fts far as. possible ample and cheap credit, j His personal view -was that cheap |-money must - necessarily bring -about a fall in sterling. 'H e thought that the British knowledge of finance would j lead the world out of its .present position and that in from nine to twelve months there would be an improvement in our commodity prices. ; \

Bv -budgeting for a deficit, the Government /had provided, a breathing space, but ,it must be -realised that >we had practically exhausted our reserves, and that, to obtain a balanced budget next year, £3,500,000 must be obtained from Some other sourci?, or saved by further of expenditure, .It wajj. imperative that the economy campaign be continued in all directions without /abatement.

The permanent lightening of t-hd burden of expenditure must depend uppn far reaching .charges to obtain equal service at less cost,' or on the definite curtailment, of state services.

The. reasons which, led t 0 the coalition had not changed in any particular, and the- political partnership mu-’t endure until th e Government was satisfied that conditions justified the consideration of a political re-arrange-ment. The Government was engrossed in the most difficult situation that it had ever faced in this or any other country, and there was no easy way out. ■ ~ Air Forbes, as Prime Mmi-ter, would have the support of the Reform Party to complete the work of rehabilitation.