THE SINKING FUND TRICK.

Dominion, Volume 3, Issue 884, 2 August 1910, Page 5

THE SINKING FUND TRICK.

.— » - •. WHEN ILL TRY AND GET BETTER- ; BUT REMAIN ILL! • . , . \. ' t. : - ■ (Bγ Finance.) ' . \ ~'■'': ,This session of Parliament has got to , •'.- consider in the same breath two .pro- , ' posals; one for borrowing a further., ,£1,750,000, the other to provide funds'for" wiping out tho National Debt. Did New Zealand finally decide upon ' ceasing to borrow any further, the proposal t<i rnalce arrangements for tho re- . demption of our debt would bo more than, worthy of consideration. A cessation.of : borrowing would imply a desiro to liqui- ' date whatever is now owing. But no such' transformation has taken place in ; our • ■'-. political or economical ideas. There ig ■■' ; every sign instead that the policy of borrowing is to remain as obdurately robust- •"'.. as of yoro. And it is invariably the 'rulb : " . that a country once committed' to it finds '-. '. the end of its tether with a.jcrk en- . gendered by reckless speed. There is no-"' ■ thing so charmingly light and',airy, as borrowing; there is nothing so painfully tedious as^ paying bacV. Now Zealand has "■•' already had an experience of this; 6he■-.■:'; may,.or must, have^ another. .- . . .. : It is extremely difficult to understand ■",'■ the need for the great borrowing of the past number of years, iu faco of the ox-,,; . traordinary woalth of the country, of the :' good seasons, good prices, slow increase of - population, and high state pf development j : :. in which three parts of tho country and people are already in. Seasons may, of . cour.su, bo udduued, but will they stand . ■:. inspection? When ono looks closely ' "at ■'•'-.' the-manifestations of our political and social ovolutioh ono is firmly constrained, to think that tho annual 'income"of. tho icountry from its developed resources': should amply suffice for. the country's••'•.-'. living and management, expenses, besides ,^ -;. leaving, if wo ■ were properly governed,' sufficient margin for fresh or new developmental requirements, and'that tho inonoy borrowed is the price paid, or rather, to' be paid, for the luxuries thrust at the . voters. Were our \ population increasing , at a rapid rate, ascertain amount of bor-v rowing would b<! both necessary andud- ~ visablc, but when we makn comparison of ■ 'our. reducing population increase: with , . ; other countries, less indebted than we, ''■■.•' whose population, wealth, and trade'-. are [■■,", increasing at a quicker: ratio, it is quite ■' difficult tii comprehend what need there is for all this borrowing.; We may well, 1 , ask and wonder how does a country liko ' the Argentine manage .to increase its ■ population, woallh, ami exports at. .a, \ faster degree than New can, 'and ■,■ still keeji reducing its .debt,-which is only ' about ,£l3 per head, as compared to New. Zealand's ,£7O. Are these Latins better , stuff than we, or arc they merely bettor ; educated or better-governed? It must be . either. Likewise Canada, whose debt increase is smaller than ours, and does not Y aggregate more than about £9 per head, ; ! lilit whoso trade, , wealth, and population, increase more-rapidly.' . ;-.-' .-;;.; There is no homelier and perhaps more .' oonvinciiut way of illustrating to the lay mind what should constitute propel conduct of Government rule '.than ,by unalogising it to the manner in, which .\ hnmn or a business ie Good : behaviour, industrious habits, curbed enjoyments,- reasonable economy, will, make.; .. the govorument of: a home", or a .business : a'..success, ,as it will as'-certainly the ■ government of. the country. The' actions of ono uro forcibly applicable to the i others '-Recognising- this,: .we' will observb. -.'. how tho behaviour of a citizen or business man who sought to ..emulate the ; Indies of our Priino Minister'.. with re- : gard to debt: extinction , would be regarded. Wo .will aesutijd-Ythat u -trade?. :■' is'indebted for .£10,000... He wants more money, and goes to liis mortgagee with a. proposal to pay himi. so touch extra every year, or, rather, lay aside so much extra, for the liquidation of his debt, provided, the mortgagee, continues' giving . him', further, loans, from' time, to- timo » ! ns,'required. It -is.-.difficult t,o .rtaliso '■'". I hat tho mortgajeo would consider him iither than a lunatic or a financial pugilist feinting for:,an advantageous coup./. Ho ,woul<l undoubtedly regard him as a : slim person. , A careful and interested ';■'' money-lender would, iifhe. wcro quito■'.-■. suro of . the trader's 'sanity; proceed''.to read, him a lecture oiv the worthlessness : nf • such' financial wizardry, go into an examination of his business affairs, and.' point out-where siiyingVcould.be Effected that would, obviate further borrowing until such time, as his assets, accumu-- , latcd greatly; after'Ywlvich -the'trader, inight find himself inAthiy.positioiL of, a : lender instead of a borrower. The money- * lender would at any rate find out lliat '.'■ a deal of time spent by. the trader in scheming" out such a ■ proposal . woiildi. .''.' liavo been far better'used'in attending to the legitimate furtherance of .his. business affairs., ' , ' . ' ' , In face ' of.: tho fact that New Ze3-■•'.-land is apparently to continue , 'borrow- • ing heavily, in face of the fact that '• Ihe country, is: not being properly do- - •eloped with respect .to-land settlement, >: m laco of 'the tact' that millions . of pounds have been recklessly squandered' •in useless public works, in face of the \ fact that our Civil Service is extrava-: .- gantly and autediluvially' conducted, Par- ■' ■'■ liament should . hesitate ; before ■ wasting . Iho. timo ' of the-.-.eduiitry.: and' throwing ■-;■ ■lust in tho eyes of the ;people with'such political charlatanism. -If- New Zealand wonts to save and acquire money, let her •collect, the full ,£2,ooo,oooqper; year that" '■•. reckless public works/expenditure,-■•'nostly.'.i:''' :Civil Service, and faulty'land settlement cost her. , , •..