POSITION SERIOUS

Rotorua Morning Post, Volume 1, Issue 34, 2 October 1931, Page 3

POSITION SERIOUS

(Press Assn.-

dominion finances* EXCHANGE FACTORS MAKE DIFFICULTIES STILL GREATER DEFICIT STEADILY GROWING

— By Telegraph — Copyright).

WELLINGTON, Thursday. It is understood that the continued adverse state of the Dominion's finances is causing the new Coalition Cabinet the gravest concern, and that even while efforts are being made to restore the budgetary position for the eurrent financial year, the position is becoming steadily worse as a result of external factors over which the Government can have no control. Cabinet was in conference again until a late hour last night, when a further consultation toolc place with departmental officers. It is gathered that the latest 'figures furnished by the Treasury reveal that the national accounts are down to a greater extent than it .was previously anticipated they would be, and that the awkwardness of the situation i3 accentuated by the uncertain exchange position created by the departure of Great Britain from the gold standard. The Budget presented to the House of Representatives by the United Government two months ago revealed the prospective revenue shortage of £6,850,000, but it is underwood that present indications are that that deficit will be increased to the extent of up to another £1,000,000. There is a growing realisation in political circle3 that whatever justification was revealed before the interparty economic committee for a temporary union of Party forces in an endeavour to stem the receding tide in the national accounts, the advisability of the step i3 now definitely confirmed. It is said that the steps Cabinet will be obliged to take in its endeavour to balance the Budget will cause something of a shock when the proposals are placed before the House by the Minister of Finance, the Hon. W. Downie Stewart, next week. Questioned to-day regarding the latest aspect of the financial position, the Prime Minister, the Rt. Hon. G. W. Forbes, stated that there wa3 no denying that it was difficult. The uncertainty was added to because of the difficulty in foreseeing to what extent the State trading department^ will be affected by the prevailing conditions. Mr. Forbes said he could make no definite pronouncement at the moment as to the financial position, but that it would be the subject of detailed information to be given to Parliament next week.