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Hokitika Guardian, 2 June 1920, Page 2

The possible, not to say probable, stringency of the financial position in this country has been hinted at rather frequently of late. Yesterday vve quoted the Minister of Public Health (Mr Parr) in regard to charitable aid administration, and in the course of his remarks Ije let drop a sentence pregnant with meaning. Referring to the financial side of the issue at stake in regard to the Government taking over tlie administration of hospitals and charitable aid, Mr Parr said: “A matter which would have to be considered and it might weigh with the Finance Minis, ter, was that the Dominion might be approaching a time of a little stringency —more he would not say than that.’’ However what has beCn said is a fairly broad hint, and it seems palpable that some difficult times are ahead in the matter of Dominion finanep. Already the Government have curtailed in the matter of loans to soldiers for land settlement, and,the tigliness in finance is observable in other quarters. Comment has been passed already at the de- ' lay in publishing the year’s financial re- ‘ suits. There has been a newspaper hint 1 that the surplus is 2J- millions, but this statement was discounted at once by the drawback that there were large commitments against the credit balance. That suggests that there will be very little “free” money in the surplus to carry forward for the benefit of the general administration. In other words the country is living well up to its revenue, if not exceeding it. New Zealand lias for so long enjoyed a rather enviable position, in regard to finance, and any great stringency now will * come as a shock. But the position will have to he faced boldly. Mr Massey the other day spoke of the need of forethought and economy to meet ■ the times ahead. His policy in the iinme- j diate future will require to be shaped , on those lines. Whether there will be a retrenchment remains to be, seen, t With the public services on all sides clamouring for increases, these cannot be made without extra taxation. If increases have to be made, Mr Massey i will need to recast his taxation proposals, and launching out on that troubled sea bo will have difficulties ahead. Aj public pronouncement as to the finan I einl position would be welcomed generally just now. |