The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, NOVEMBER 24, 1933 THE BUDGET DEBATE.

Hokitika Guardian, 24 November 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, NOVEMBER 24, 1933 THE BUDGET DEBATE.

The budget debate concluded with an important speech by the Minister of l* in an ce who had the task reserved to him of replying to the critical speech earlier by Mr Downje 'Stewart. The budget itself was an acceptable document in that it was not of an extraordinary character, There was nothing spectacular, and nothing aiming at immediate popularity. Mr Coates submitted the plain, unvarnished statement of debits and credits, and there was a surplus of £40,142 due to the hypothecation of certain mortgage securities. Mr Stewart did not question that course, as he had himself while Minister, utilised reserve funds to help lessen annual deficiencies. Mr Stewart’s main comment was in respect to exchange and the funds accumulating at Home, in regard to which the Government had indemnified the banks against loss. His remarks were based on the. same opinions as when ‘he left the Ministry rather than agree to an increased rate which he believed would have a crippling effect in the end on the country. He made out a good case and was so much impressed with it, that he was prepared for his principles and belief Sj to leave his high position of office, and revert to a n ordinary member. Mr Coates in bis latest speech holds that Mr Stewart has not said anything fresh 011 the subject, bub again intervened before the Government had time to carry out its policy. The Reserve Bank is the means by which the Government- hopes to s.tve the situation, The hill has passed the Houses and when the bank is established it is intended it will take over the Government surplus sterling assets. The Minister in his statement has assured the House that in handing over the assets to the hank, adequate, precautions will be taken to ensure the financal position of the bank. Mr Coates at the present stage does not contemplate any loss. Mr Stewart is rather disposed to think, in the final adjustment, there will he a loss. It is in that respect that the two doctors of finance differ. It will take sometime to finally clear up his high monetary transaction and until it is, any possible loss will be in suspense and not appear in the country’s balance sheet—but the legacy might be there all the same. Mr Coates is for the time being on ground no less certain than that taken up by Mr Stewart, and there the matter will remain till the final adjustment, or some other Finance Minister takes office and probes afresh the position. The budget debate as a whole was not particularly illuminating. It will be recalled that Mr Coates has budgeted for a deficit of a little ove r two millions, but will again be riding on reserves to a similar extent, so that the position is not as bright as it is made to appear. It is not possible to ignore the general gravity of the situation, and this is emphasised in the action of the Government not reducing taxation which for general purposes would he very helpful. The Minister has a difficult task to perform in keeping within his estimates, hut he is fully charged with his obligations, and there is evidence that Mr Coates is bent on doing his best with the means at his disposal.