The Dominion THURSDAY, MAY 11, 1916. WAR FINANCE

Dominion, Volume 9, Issue 2768, 11 May 1916, Page 4

The Dominion THURSDAY, MAY 11, 1916. WAR FINANCE

The: Australian Federal Treasurer's statement to Parliament dealing with the question of war finance contains some striking facts and figures, and gives the impression that Commonwealth Government aro facing.. this difficult problem in a courageous spirit. The statement merits the careful consideration of the Government and. Parliament of New Zealand. Our Hi'ouse of Representatives, will soon bo called upon to concentrate- its attention on New Zealand's duties _ and responsibili.ties from the point of view of war finance, and it should prove advantageous to know the result of the Commonwealth's efforts and what its Government now proposes to do. Since June, 1914, the Federal Goveminent has spent £70,000,000 on war purposes, and the naval and military estimates for the coming year amount to £44,562,039, as compared with £17,537,255 last year. The ! discovery of the best means of providing for 'this unprecedented expenditure constitutes the problem which the Australian Treasurer and his colleagues have to solve. There! is room for difference of opinion regarding some of the details of iho financial policy of the Commonwealth Government, hut fair-minded men of all schools of political thought will give it credit for tho big and bold way in which Ministers are facing their formidable task. They Tealisc that ordinary measures cannot cope with the extraordinary situation which has arisen, and that they must strike out in new directions. The cabled report of the Federal Treasurer's statement does not give anything approaching a complete explanation of the position, but the facts stated, when considered |in conjunction with information contained in recent Australian papers, indicate that the financial outlook is on the whole decidedly satisfactory—much more satisfactory than it was in November of last year when the War Loan Tl.'il was introduced. It appears that 11-,« revenue in two of the largest rev-enue-producing departments has increased by no less than £2,000,000 beyond the estimates, and the crhphxtic assurances of Ministers that strict economy is being practised give reasonable ground for the expectation that there has been a substantial rlecreasc in expenditure. It has been forecasted that the Treasurer would probably be able to report that ordinary revenue had been more than sufficient to niect ordinary expenditure, including the payment of interest on, and the provision of a sinking fund for, the war and other loans. It was expected that the Treasurer would also be in a position to announce that the finances in sight would enable Australia to carry on her share of the war up to June 30 and to show a surplus. Tho cabled information does not contain enough detail to show whether theso expectations have been realised. Indeed, the Budget is based on the results of only ten months of the financial year's operations.

Australia is passing through a period of remarkable prosperity, which the war has been unable to check, and the Government has come

to the conclusion that it is time, the Commonwealth" took over' . the entire responsibility for its war expenditure. The Treasurer considers that this is the least it should do. His suggestion that Australia might even lend money to the Imperial Government may appear extravagant, hut it is in the- right spirit. The overseas Dominions should do their very utmost to lessen the tremendous financial burden which Britain is now bearing with a willingness that should put us to shame. No one can pretend that the people of Australia or Now Zealand arc at present carrying their full share of the load. Tho Australian Government has very properly decided that the Commonwealth must now cease altogether trom looking to Britain for war money. _ Australia must dip moro deeply into her own ample resources in order to pay her own war bills Parliament is, therefore, to be asked to authorise loans of £50,000,000 for tho ■ Commonwealth, and £9,000,000 for tho States. • The money is there, and it is urgently required. Is it too much to expect a prosperous nation to pay its money in order to save its soul ? Australia is doing nothing very heroic in deciding to shoulder her own financial responsibilities. She is not doing anything more than her obvious duty. Yet sho is doing more than we have yet attempted in New Zealand. Our Government has hitherto been altogether too timid in its treatment of the question of war finance. The public is ready to make the sacrifices necessary to ensure victory, but the Government seems afraid to put the spirit of the people to 'the test. The coming statement of the Finance Minister is being awaited with the keenest interest. The people of New Zealand would welcome a declaration in favour of more self-reliant financial [ methods. . They would give hearty support to well considered proposals with the object of paying our own war costs. The voluntary gifts of the people make a fine record; they are a testimony to tho readiness of the people to meet tho calls arising out of the war; but the time has passed for this sort of thing on a large scale. It tends to place an undue burden on the' cheerful givers, while others keep their pockets closed. New Zealand is quite as prosperous as Australia, and is proportionately just as able to carry her own financial load. Tho financial sacrifices we have so far made shrink into utter insignificance when compared with tho burden the British taxpayer has been called upon to beer. It is true that a loan for public works has been raised in New Zealand, .but that cannot ho regarded as part of the price of victory. A war loan would give some relief to Britain. It would at any rate show that our offer to contribute our last shilling was something more than an empty boast.