FINANCIAL OUTLOOK

Dominion, Volume 12, Issue 175, 19 April 1919, Page 8

FINANCIAL OUTLOOK

LOAD OF WAR DEBT ' WE. MUST INCREASE PRODUCTION ■■ Having regard to tho discussions that • have recently, taken place in tho British Houses of Parliament with respect to the inroads made upon, national' wealth by the demands of the war, some of the opinions expressed by tho lion. Arthur Myers ,:on tho New Zealand financial outlook are •"interesting."By an authoritativo source," said Mr. Myers, - "I observe that the estimated national wealth of the Untied Kingdom ■ is some 18,000 million pounds". An amount •,equivalent to 34 per cent, of .this figure ~(viz., 6065 millions) has been expended by "Britain on tho winning of the war. The national income of the United Kingdom '-is,, estimated at. some 2100 millions per j annum; so that* on the same basis, Bri'tain, may be said to Imvo mortgaged between two and three years' income in ..older to gain'poace anii freedom. . "Coining to Now Zealand and making a ; similar comparison," continued the Minister, "taking the.'pre-war estimate, approximately our own national wealth aggregates some 400 millions, about 15 per cent, of which (G1 millions) has already .been applied to the meeting of our obligations incurred in. taking a full share of the fight for the principles under which- we have, lived and progressed durJi.ng.so' many, years. Again, our national • income'is estimated to bo sonio 55 mil- . lions, so that it may bo said that up to, -the present we have spent something over one year's incomo on the prosecution of the war. ' "In our own case and in that of every country which participated in., the struggle," supplemented Mr. Myers, "the dead-weight debt incurred during the war cannot yet be definitely stated in so many figures, for' pension liabilities, cost of repatriation, gratuities and allowances, etc., will continue for many yeans to come. The fact remains, however, that 7ve have made a. big hole in our resources, and. it is incumbent upon us to set to work to refill tho gap. always bearing in mind that any dislocation of industry or capital for such purpose would defeat our object by the creatiou of an- . other and perhaps larger hole in another direction. To make °ood the inroads upon our capitjl sanctioned by the Do- , minion for war purposes, every effort " must-be made further to develop the resources of the country, applying scientific methods to our primary and secondary industries, to the end that we may increase our production to the-greatest possible extent."