SYMPATHETIC

Rotorua Morning Post, Volume 2, Issue 392, 29 November 1932, Page 5

SYMPATHETIC

("Post" Special Commissioner).

CABINET AND FARMERS SOUND REMEDY WANTED BUT NO HALF MEASURES ; PRIME MINISTER'S COMMENT

Wellington, . Monday ■ "We are deeply impressed with the plight of the farmer and Cabinet is unanimously sympathetic to him, but we want to he sure that we have something more than a palliative. We are seeking a sonnd'remedy, and there is one other thing we have to find — the money." In these words the Prime Minister snmmarised Cahinet's prolOnged deliberations on Saturday, when some consideration was given to the off er of the Bank of New Zealand to provide a loan to enable local rating and land tax relief to be given to the primary producers, and the refusal of the directorate to increase the exehange rates. Mr. Forhes made it clear that no decision had been reached by Cahinet as to what the next move would be. He indicated that every angle of the sit'uation had heen considered, and that not only had the alternatives of the bounty scheme and the payment of farmers' local rates and land tax heen considered, hut other possible methods of assisting the primary producers had been under review. Central Bank Bill "We realise the importance of the problem, and there will be many more Cabinet meetings- in the next few days," said Mr. Forbes, who ad.ded that only two subjects — the plight of the farmer and the Central Reserve Bank legislation — had been under examination at Saturday's meeting. Cabinet, said the Prime Minister, did not consider that the two questions were intertwined, but both were considered to be of major importance at the present time. "The banking legislation is now ready," he added"There are just one or two points which we will discuss before the measure is introduced. Its presentation will be delayed until the return of Mr. Coates and Mr. Ransom from Motueka." Cabinet on Saturday had the benefit of the advice and information received in England on the central banking question by the Hon. W. Downie Stewart, Minister of Finance, and over three hours was devoted to the diseussion, which was the first formal consultation the Minister has had with his colleagues since his return home last Wednesday.