A NOTE OF CAUTION

Dominion, Volume 10, Issue 2900, 12 October 1916, Page 6

A NOTE OF CAUTION

FINANCIAL OUTLOOK IN NEW ZEALAND , MR MYERS'S VIEW , By. Telesraph—rress Association. Auckland, October 11. Tho Hon. A. M. Myers, Acting Minister ■_ of Finance, states that tho total ordinary 'revenue for the six months anded September 30 amounted to €6,349,627, against £5,456,500 in the Corresponding six months of tho preceding year. Tho difference in favour of the current year £894,127 —is ascribed partly to additional taxation and partly to buoyancy of the revenue due to the continuance of commercial and industrial prosperity. The expondituro from the Coasolidated Fund for'the six months! was £6,256,903, against £5,938,419 for tha corresponding six months last year, an increa.se of £318,484, -which was accounted for wholly by the war bonus and increased payments for interest and sinking fund. Tho excess of revenue over expenditure for the first half of the year amounted to £92,724. "In placing beforp the public these figures,-which disclose such satisfactory evidence of tho prosperity of the Dominion, it must hot-be overlooked that 'the olaimß on the Consolidated Fund for war pensions and for interest and sinking fund charges on war loans, etc., aro ever increasing amounts," said Mr. Myers, "and that had it not been for the increased taxation invposed last year it would have been impossible for the Treasury to have met tho additional burden. I further venture to utter a note, of caution to tho public against accepting the present favourable financial position of tho country as ovidenco that the difficulties of finance are at an. end. It is impossible to predict what the future may bring forth, but it is certain-that with the rapidly increasing expenditure it will still bo necessary for all Government Departments to continue to exercise that strict economy in all matters affecting expenditure out of appropriations made by- Parliament which the figures disclose. As regards the Public ,Works Fund, although Parliament last year as a precautionary measure authorised tho borrowing of additional amounts for public works, it will not be necessary for the present to ,raise any moneys under that authority. It is' satisfactory to recall tho fact that since the commencement of tho war tho Minister of Finance, Sir Joseph Ward, wisely decided to provide additional investments in London in liquid form in case of any unforeseen circumstances arising to necessitate an unexpected call'on the Consolidated Fund. This has been done by investing amounts from time to time in Imperial War Loan securities. Amounts so invested form a portion of tho surplus of last year and unexpended balances of various accounts which aro not during the period ; of the war required for expenditure" ..... After pointing out the need of thrift, the Minister added: "In view' of the indefiniteness of tho duration of tho war ..and the consequent steady growth of . our expenditure, wo must not overlook the fact that it is incumbent on every citizen to recognise more than ever his /obligations to the Empire to work harder for ever-increasing production and spend less than he did previous, to the outbreak of hostilities, so that notwithstanding the unparalleled prosperity at present enjoyed by the Dominion . we may, by the maintenance of a policy of economy and thrift, bo able to ■increase the extent of our assistance .to tlie Empire in providing not only sufficient- money to meet the cost of carrying on the war to a successful conclusion, but also in supplying a largo proportion of her ever-increasing requirements in meat, wool, and dairy produce."