The Guardian And Evening Star, with which is incorporated the West Coast Times TUESDAY, JANUARY 24, 1933. THE SITUATION.

Hokitika Guardian, 24 January 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times TUESDAY, JANUARY 24, 1933. THE SITUATION.

Tun political situation at the present juncture wifi make the meeting ol rtoiV./amuit on Thursday an event of outstanding interest. While the ooveniiment was united, its efforts to solve til-2 financial position me awaited with quiet confidence by the bulk of the people. There was the realisation tii,at the best was being done in all* th© Circumstances, and that safety was the watchword, The problems of tliis country, no less than othur parts! of the world; are indeed complex. The financial stringency generally prevailing has produced problems of the first moment, and no ready way out of the apparent jinpagsp has been found, The farmers, through their association, recently made extravagant demands on the Government. The catalogue oi wants if agreed to, would have wrecked the fortunes of the Dominion hopelessly. But the Government- conceded me important demand, that in relation to exchange. Tti; will better the prices of farm produce on the oversea markets, but it will have !ai-reaching affect within the Dominion. The Government in settl.ng its accounts at Home, will require to remit far larger sums —and this from a Treasury which is very low. Ti.e granting of the inquest for a higher exchange was dearly a means to temporise with the general situation. It is not dear that the farmers will be satisfied with a part,, when the -whole asks for so- much. But how the Government is going, to meet all the’ demands is an achievement which appears to bo impossible. While the farmers may not be wholly satisfied, it is clear other interests which will be adverely affected by the increased exchange, are not at- all dissatisfied. The Government faces two factions, and its own ranks are not solid. Mr Stewart’s viewpoint will be shared by many Government supporters in the House, so that a. first class political crisis is in view. At the same time, there is not any, other group in Parliament able to propound, a policy which can meet the present national financial position. Ituis not possible to wait for something to turh up, for in the interval, as we have seen, the farmer section is facing a most difficult position. And because the country relies on its production, for -its national welfare those in authority may not stand by inertly and see that bulwark of national security ruined. This aspect of the general situation no doubt prompted the Government to act along those lines giving the most immediate results to the producers. What palliatives 1 can be given or offered for the benefit of other sections of the community remain to be seen, for what is being done for the farmers is costing the country .a great deal in the extra sum the Dominion must remit to satisfy its maturing debt payments. If the situation is realised at its true import—the very serious financial petition of the Dominion as a whole—it will he recognised that in acting as has been done, the Government has adopted a form of compromise. It is clear the action will not settle the position, only moot it in part-, and there is still the need to grapple further. The members of the Government securing from day to day the bent advice possible, are no doubt doing their best, and it does not seem likely at the moment that any other grown in Parliament co’dd do better. Rather may ,We expect the reverse.