The Dominion MONDAY, JUNE 16, 1919. THE POLITICAL OUTLOOK

Dominion, Volume 12, Issue 224, 16 June 1919, Page 4

The Dominion MONDAY, JUNE 16, 1919. THE POLITICAL OUTLOOK

The news of a farewell luncheon to Mr. Massey and Sir Joseph Ward in London discredits recent reports which suggested that their return was likely to be indefinitely delayed. It now seems likely that they are adhering to the programme under which they were to sail from Vancouver for New Zealand about July 3. Since, presumably, they have done all that they can as representatives of. the Dominions at fhe Pcacc Conference, it is obviously incumbent on them to return as speedily as possible. As a member of the National Cabinet observed 1 on Saturday, they cannot return too soon "to face the present period of unrest with which New Zealand is confronted politically and socially." The absence of the political leaders has had a serious effect in delaying the development in this country of such a policy of reconstruction and progress as the times demand. Much good work has been done on specified lines in connection with repatriation and other activities, but in too many cases the existing state of affairs is plainly one of stagnation. It, oi course, does not follow that as soon as Mr. Massey and Sir Joseph Ward return the wheels of progress will hegin to spin merrily. The political situation in the Dominion was never more involved, or the outlook in some _ respects more uncertain, than it is at the present moment, and the utmost that can be hoped from the homecoming of the two 13arty leaders is that it may immediately pave the way for a comprehensive, political .stock-taking and for whatever readjustments are necessary. A definite test may show that the party lines hitherto existing have been so cut across and altered as -to make a return to pre-war political conditions impossible and unthinkable. This, certainly, is_. to be hoped, but until the situation has been definitely tested in Parliament and before the country a wide margin must be left for eonjecturc as to the actual course political events will take.

There is, of course, no obscurity in regard to what the country at (his stage needs and has a right to expect from its political representatives. The war and its aftermath have dwarfed issues that once loomed The vital interests of the Dominion demand simply a loyal union of all constructive forces in furtherance of a policy based upon a recognition of the necessity 'not only of taking bold' measures to cope with the burdens the war has imposed, but of meeting the new spirit that is abroad here and in other parts of the world—a spirit which crystallises in a widespread demand for rapid progress in social betterment. Any attempt to re-establish artificial divisions or to satisfy personal ambitions by an appeal to narrow party sentiment would be a blow struck directly against the welfare of the Domin.ijpn. In the quickening experience of the war period those who have in thera the capacity for growth have been endowed once and for all with a- broader outlook. Only incurable reactionaries desire or are ready to revert to the old order, in which; national interests were subordinated so often to those of party. The attitude now demanded, the only attitude that should V tolerated, is that of directly facing the great and urgent problems of the day with a view to concentrating whole-heartedly and with whatever co-operation is available upon devising effective measures for their solution.

Several authoritative statements have of late laid clue emphasis upon factors which strengthen the demand for a new political outlook. Some days ago, for instance, the Acting-Minister of Finance, Mr. Myers, supplied particulars of tho staggering increase' in the Public Debt of the Dominion since 1914; and-on Friday last the chairman of directors of the Bank of New Zealand, Mr. Beauchamp, dealt in an informative way with the incidence and yield of taxation during the war period and with other aspccts of war and after-war finance. The essential fact to be noted is the enormous increase in the permanent charges which the Dominion will have to meet annually for many years to conic. Before the war interest and sinking fund on'the Public Debt, much of it offset by reproductive works, amounted annually to nearly three millions, and the annual bill for oldage and other civil pensions was about half a million. The dotation of loans, chiefly for war purposes, since 1014 has increased the annual amount for interest and sinkinp fund by nearly four millions. At the same time there is in prospect a total liability for war pensions of about two millions a vear, and the annual charge for civil pensions is now not very far short of a million. As an outcome of the war, that is to say, and with the account not yet completely made out, the permanent charges to bo met yen

by year have been increased by well over six millions, and with the addition of pre-war liabilities undci this head still current account for nearly ten-twelfths of the revenue which in 1913-14 more than sufficed for all purposes. Contemplation of these enormously-increased liabilities at a time when there is an all but universal demand for improved standards of living sufficiently emphasises the need of undivided concentration on essentials and the exclusion of all petty issues. Obviously the policy that should be pursuecHs one of so forwarding development as to broaden the basis of taxation. This implies amongst other things'the correction of anomalies like the present taxation of companies and the speediest possible relief where taxation on the existing scale imposes an all but crushing handicap on the conduct and expansion of trade and industry. The one thing_ essential in order that the Dominion may at once cope with its war burdens and' pursue a policy of progress is effective unity. The penaltie's resulting from needless and unreal divisions in politics and from ruinous follies like the disastrous strike now in progress in Australia have always been severe. Henceforth the penalties visited upon such departures from rational procedure will be very much n:ore severe than they ever were, in the past. These are the facts best worth bearing in mind as the political leaders are about to return from their mission to Europe.