The Dominion FRIDAY, JANUARY 29, 1909. THE COUNTRY'S FINANCES.

Dominion, Volume 2, Issue 418, 29 January 1909, Page 4

The Dominion FRIDAY, JANUARY 29, 1909. THE COUNTRY'S FINANCES.

The financial returns for the quarter ended December 31 last are now to hand, I and they contain evidonce that the criti--1 cisms which were turned upon the returns I for the quarter have stirred , the Government into 1 making an effort to check tho alarming rale at which the public expenditure has been growing. 'Partly owing to the attention which we secured for the situation revealed by the earlier figures, and partly owing to tho ending of the necessity for electioneering extravagance, the figures make a rather better showing for the quarter under review than would have been the case had ithe elections still been pending and had I our criticisms not awakened the country to an interest in its financial position. 1 The September quarter ended with a dei ficit of £26,718 after a long series of auri pluses for that quarter ranging, roughly, from two to four hundred thousand I pounds. F6r tho half-year ended September'3o, the usual balance on the right side, amounting in 1907 to about £300,000.' had suddenly been'transformed into a deficit of about £170,000. For the December quarter the revenue amounted to £2,591,388, and the expenditure to £2,449,The 'position for tho nine months as compared with the nine months of the preceding year will appear from tho following table:— ••• 1908 1007 ' £ £ Revenuo 0,421,827 6,810,802 Expenditure 6,451,936 5,876,613 While the revenue has only increased by about £110,000, tho expendituro has increased by ovor £400,000. For tho nine months past, in other words, the expendituro has exceodod tho rovenuo by £30,109—a sharp change indeed from the preceding yoar, the first nino months of which showed an excess of revenuo amounting to £434,289. In the year, that is to say, something has gone wrong to the extent of nearly half a million sterling. It is quite useless to attompt a forecast of tho results of tho curront quarter.' In past years tho March quarter has always shown a balance on tho right side, and .there may bo a balance this year large enough, when added to tho fine opening balance of £767,849, to enable the Government to mako its transfer of £800,000 to the Public Works Fund and still show a small "surplus/ . One thing nobody will doubt: that if tho public had not been made acquainted last November with the extravagance of tho Government, the year would have endod with a not doficit, which oven tho opening balance would not have transformed into a gross

surplus large enough even to enable the transfer of the £800,000 promised for the Public Works Fund. .We, may look forward, however,'to the realisation of the Prime Minister's expectation of a small balance to carry on to the financial, year j 1309-10." For. this result, he will be indebted to the .balance, with, which he opened the year's accounts. It is obvious that during: the year 1909-10, which will open with only a small balance, and in which the effects of the current trade de-pression-will still be felt, any continuance of.SiE Joseph Ward's favourite method of boom and squander will resultan disaster. . We shall expect,. therefore, to find him making an attempt to carry on the; policy:.of retrenchment which has already'been hinted, at by himself and by those journalistic allies who,: before the elections, had nothing but: vituperation for those who dared to/suggest that there was a single flaw in the perfect administration- of-the Government. Nothing.but the most rigid economy will preserve the country from serious distress; in spite of •its.magnificent,resources. Ministers have already awakened 'to the. .peril that threatens them, and ■ it is possible that the,, Peime ;■ Minister may cease ;to abuse and' deride the advocates of prudence. He has already given some, signs that he is, , taking their advice, to heart, but. the. country is by .no means out of the wood, yet, -and the Government must be watched as vigilantly as ever. It is 'a significant fact that while the expenditure; in the various departments is greater ;by. half a million sterling for the nine months ■ ended: December 31 than for the last nine: months of 1907,' only- some £93,000, of .this excess is supplied by • the Quarter just ended;. In other words,'the Government has grown alarmed since the elections.',.. To, sum up, the returns afford most/ample justification for: every word :of our-past ..criticism of the Government's ..reckless; extravagance, but the. country must still give 'its attention to the fact that.for, tho paet nine months the; ■revenue has only increased by 2per ,'cent; over the,':figures for 1907—and'this. :although taxation has greatly increased— -while the,expenditure has increased by 10, ■percent/ ■'■..' ■-'■' ■■; V : ; ;