THE COALITION

Hokitika Guardian, 2 December 1932, Page 6

THE COALITION

THIS MORNING’S CAUCUS

IMPORTANT QUESTIONS TO BE UiSuiiSSED. ' WELLINGTON, November 39. It is nor too much to say that the caucus of Government members which is to be helai 'at 10.30 o clock ’tomorrow morning may prove to- be the most critical in the liie of the Coalition. This is the first caucus which has been held since the eaily days of the session. ' All groups of members, whether they represent the country or the city, are ' anxiously awaiting it, for they believe it will be of cfcnsidei'abLa importance in'determining the outcome of the keen agitation for assistance for the- primary producer which has lately arisen in i arlianient. As the Prime Minister (the Rt. Hon. G. W. Forbes) has 'already stated, the provisions of the Central Reserve Bank Bill will be placed before the meeting, and a discussion will be taken on. the general financial position. Two senior Ministers, the Rt. Hon. J. G. Coates and th e Hon. E. A. Ransom, are expected to return to Wellington to-morrow morning from the Moiueka electorate ; so that there should be a full attendance of members of the Cabinet at the' caucus. It is not known whether Cabinet has yet been able to prepare a definite plan of assistance for the farming Community or whether, if this has been prepared, it wall he available for discussion by the meeting. If is- certain, however, that those members of the Condition who have bean pressing, for action will not lose the opportunity of re-emphasising their demands, and consequently the- meeting is expected to resolve itself into a free discussion of ways and means of rehabilitating j the farming industry. While this I group of 30 Coalitionists are satisfied with their initial success in calling the attention of the 'Government and of the country to the pressing needs, of the farmer, they are by no means prepared to let the question drift on |Unsettled, and regard it as the Government’s duty to present a scheme of rehabilitation in the near future. 1 Late to-night it was ascertained that the Government may place bpfore its supporters at the caucus certain important proposals involving special legislation. It is expected that after the meeting the. Government will at* Rest be in a position to decide exactly what legislation will be prosecuted this session and whether the necessity exists to call a short session of Parliament in February rext. Questioned this evening, the Prime Minister declined to give any further indication of the course which’ the Government might fellow. THE EXCHANGE; QUESTION.

Just to what extent the exchange agitation persists it is difficult to d?-

termine until the caucus views are expressed. It has b<en suggested that the Government will .be urged to legislate in tb'e direction of ensuring the raising of the exchange rate,.hut it is considered that Cabinet will be very reluctant to pursue such a course. A measure of support is also possible for a scheme for inflating the currency, but there again it.is difficult to assess the- amount of encouragement likely to be given such, a policy. The improvement in the butter market during th° post 1 few davs h'is resulted l in some

members revising their estimate of the gravity of the crisis. It sterns possible that the general disposition among Government members .will be to give Cabinet full opportunities for considering the whole position with a view to placing its proposals before the House early next year. INTEREST BURDEN.

The Prime Minister has already indicated that he believes the interest burden must bs lightened, hut it is difficult to secure any definite information as to th e precise extent of the out which Cabinet considers should' be applied to interest rates. On.? view which will be expressed by a Government member will be that t ,- e capital values of farm lands shou'd be voluntarily •reduced but it is recognised that this question will give rise to many difficulties'. It is understood that one member of the Associated Parks is in fnvour of reducing interest to a maximum of 4 per cent., and it seems certain that, in view of the growing opinion that interest rates must com e down, the Government will pay particular attention to any views on this question expressed at the meeting. the position s-ems to he that Cabinet will take no' very definite plan of to-morrow’s, caucus, but that the views express'd' there wdl have an important bearing in the moulding of the Government’s policy for meeting a critical situation.