REVENUE AND EXTRAVAGANCE.

Dominion, Volume 4, Issue 1021, 10 January 1911, Page 4

REVENUE AND EXTRAVAGANCE.

The Prime Minister, as Minister for Finance, is to be congratulated on the substantial increase in the public revenue for the nine months of the current financial year. The public who have contributed the increased funds in the way of taxation, increased railway fares, etc., may not perhaps experience the same amount of satisfaction; but they can at least find some consolation in the fact that the figures afford evidence of improvement in trade and business generally. The total gain for the nine months is £703,272, of which Customs taxation produced no less than ' £261,029; postal and telegraph, £209,312; and railways, £is:-), 914. The'heaping up of taxation on the land is beginning to react, there being a small falling off in revenue from this source, dup presumably to the cutting up of some of, the larger estates, which means the loss to the State of the high rate of taxation under the graduated tax. We predicted at the beginning of the year that this large_increase of revenue would bo realised, and foreshadowed an enormous surplus unless Sir JosEpn Ward transferred a large part of the money to the Public Works Fund. Even with a steadily increasing expenditure under the. Consolidated Fund, it was safe to anticipate this, and we urged at the time that the special taxation imposed by the Government was unnecessary, and that the super-tax particularly should be repealed. This, however, was not done, and the public in consequence have had dragged out of them a much larger sum than was necessary by way of taxation; but which will serve a useful. party purpose for the Government by enabling them to supplement the Public Works Fund and offer roads, bridges, etc., galore on the eve of the elections. The electors will as usual lie bribed with their own money. On tho expenditure side, Sir Joseph Ward is as usual silent. He hints, however, in an interview published in the Ministerial journal at a substantial ■ increase in expenditure. To quote his own words: '

' Of course it is ' perfectly well 1 known that a number of new charges will have to be provided for this year. For; tho first time there is not only tho cost of inaugurating the defence scheme on the lines rcconimended by lord Kitchener, but provision has been made for meeting the interest 011 the cost-of our gift of a Dreadnought to tho Imperial Navy, and we have further niade provision for starting sinking funds for tho gradual extinction of all our loans,' past and , present. These 'v. ill necessarily very materially reduce the surplus revenue shown above, but I am confident that at the close of tho financial year's transactions, when tho-full charges on both sides of tho ledger are, brought. to. account, we shall liave a fairly substantial surplus, winch will be largely used as heretofore fo.r supplementing tho Doininion's'expenditure 011 public works.

It is a pity that the Peijib Minister was not a little more definite regarding the increased charges added during the year. The increase due ,to the new defence-scheme must,-up to the present have been infinitesimal, for tho simple reason that the scheme has not yet been put in operation. It is merely in its initial stages. As to tho Dreadnought loan, we know that that was only raised a few weeks . ago, and the charge under that head up to the end of March next can only run into a few thousand pounds. As to tho sinking funds scheme, Slit Joseph Ward was particularly carcful .to ensure, that posterity should bear" the chief burden of that by-making the date of extinction 75 years hence. - The total increased charge under that head will probably not amount to as much as tho cost of the visit of Sir Joseph Ward and Dr. Findlay to England in March next. If the now charges which he mentions represent the only increases in expenditure which ' the country has to fear this year, the country can congratulate itself. We venture to think, however, the increases in other directions not named by Sir Joseph Ward will greatly exceed the new charges; but what is more to. the point, the new taxation imposed to meet the new charges will, with the .general increase of revenue, bo overwhelmingly greater than the amount actually, required. This, of course, was f&rescen by the Government—but they wanted the money for electioneering purposes, and they will get it.. The huge surplus from revenue and the enormous borrowing that has just taken place will afford opportunities for wild extravagances during election year that should, create another of those records which Sir Joseph Ward-de-lights in. We sometimes ' wonder whether the public realise that the annual interest charge on our publie debt last year amounted to the enormous sum of £2,781,839, and that each year shows a substantial addition to the . charge, due of course to fresh borrowing. Instead of a "tap-cring-off" policy, which has been promised from time to time, we are confronted this year with a staggering loan—another of the Prime Minister's records—of £5,000,000.. The depression of two years ago has taught- us nothing—the' promises of careful and economical administration of the country's affairs are thrown overboard at the first sign of renewed prosperity.