The Dominion

Dominion, Volume 8, Issue 2535, 9 August 1915, Page 4

The Dominion

Financial authorities and public men of stalling throughout the Empire for the past few months have been laying special stress on the need for economy in* public matters as well as in privato life The tremendous drain on the financial resources of tho Empire in connection with the war has not only been an increasing quantity, but in addition there has been a growing volume of opinion in support of tho belief that tho war may bo prolonged beyond the expectations formed in the earlier stages of tho struggle. In Britain leading bankers and financiers have felt it necessary to impress on those in positions of responsibility and on the public generally that great as the financial resources of the Empire undoubtedly are, it is imperative that they should be conserved in every possible way, to ensure that thev' will be equal to the terrible strain likely to be imposed by the, continuance of tho struggle on the colossal scale required to ensure complete victory. Already steps have been taken in (he Mother Country to aii. off, as far as poss'ble, all e*v

pcndituro for public purposes not associated with tho conduct of the war. Local bodies have abandoned progressive policies of municipal development of all kirds. Beautifying schemes, public utilities, roacl improvements, building extensions, involving expenditure of public funds aro being laid asid-3 for more suitable times; and economies arc being widely practised as a precautionary measure. Tho war may not last as long as some people expect, but it would be suicidal to take risks. In Now Zealand up to-the present little has been dono by public bodies in tho way of curtailing public expenditure. Here ancl there projects have been held in abeyance, but no systematic action has bean taken. The matter is ono that calls for. immediate attention. . In a few weeks' time Parliament will have under consideration tho Public Works Estimates for tho current year. It is obvious that there must be a substantial reduction this year in the, amount set asido'for public works. Prudence, if not necessity, demands this. Before this war is over we may want every penny wo can raise for tho equipment and transfer of troops and fcr the maintenance of our men in tho field Roads, railways, public buildings aro all important requirements in normal times they arc all necessary tor tho development of tho country —but tho necessities of the war arc for the time being of infinitely greater moment. Exnendituro on public buildings especially should be cut down to tho lowest possible figure. It would be false cconomv to hamper production, and a certain amount of expenditure in tho way of opening up. land for settlement is necessary, but the effect of every pound so expended should bo carefully weighed. Demands from members and their constituents for public works which in normal t : mcs would deserve tho favourable consideration of the Government should rccoivc tho most rigid_ scrutiny, and only thoso undertakings most urgently necessary should be entertained. Members themselves should realise this, and act accordingly. Economies in Departmental expenditure, too, should, bo practised wherever possible. It is unlikely that we shall be able to borijow abroad for purposes other than, tho war, and there has been ta„Vk of raising a local loan. This l&tter course we believe will bo necessary, but the loan should be as small as possible. It would be unwise to go on tho maiket hero and divert from its usual channels any large part of the money at present availablo for the purposes of trade and commerce and private financial operations in general. A million loan could bo raised with little difficulty, and that should suffice for the time being for urgent requirements outside the war. Happily tho country is in a strong financial position, and with the exercise of proper prudoncc avid economy in our ordinary expenditure should be fully capable of meeting tho strain likely to bo imposed on it.