The Chronicle

Horowhenua Chronicle, 13 September 1915, Page 2

The Chronicle

PUBLISHED DAILI

levin. AIOMJAY. Silirr. 13, I'JJ.S

THE UOMLNIO.N SLNKLNG FUNDS.

Jloceiidy The Chronicle had something to say in support of the .New Zealand Sinking Fund scheme, expressing ihe hope that now, when a tune of finan-cial-stringency was upon us, nothing would be done to hypothecate these funds from the purpose they were established to serve. It was significant that in the very week that our article appeared a member of the House ol J lepmsei) t a t-ives, from his bench in

the il-oii.soj advocated Llie utilisation ol tliis very fund lor purposes ul' ordinary expenditure. Already in our political history we have seen such an act. perpetrated by the representatives el the people, ajid undoubtedly there is risk ol' the first bad precedent being lollowed, provided the views of a nui inconsiderable section of the Parliament bo not opposed with vigor, the arguments in favour ol hypothecation are based 011 the fact that New Zealand necessarily must be a borrower ol money for many years to come, and that to borrow and save at the one time is false economy. But against mat it should be borne 111 mind that a great deal of our borrowing in the pa.-1 Jia.s been lor unproductive purposes, and that to saddle posterity with the whole of this cost would be unfair. TJIO Coalition Government we are pleased to observe, is quite opposed to lhe idea of doing away with sinking funds; in fact it is intended to extend the principle to war loans. For this decision tile Government is entitled to the well 'wishes of the people, for a basicallysound finance demands a persistent cognisance of the present moral liability of the State, and a msolute resolve that there shall be 110 attempt to tide over present difficulties by evading the need for meeting prospective liabilities as .distinguished for those immediately pressing.