Hokitika Guardian & Evening Star SATURDAY, JUNE 5th., 1920. THE WEEK.

Hokitika Guardian, 5 June 1920, Page 2

Hokitika Guardian & Evening Star SATURDAY, JUNE sth., 1920. THE WEEK.

' The announcement that Mr Massey is appealing for a two million loan is not surprising. A pre-war intimation of this nature would have set the Dominion aghast, but we have got the habit now of thinking in millions, and there are no predictions of “galloping to a deficit,’’ or “reckless extravagance”.

The folk who talked in that strain in times gone by, are themselves responsible for the borrowing of to-day, and they are sugar coating the unpalatable financial position as well as they c an. Mr Massey naively remarks that the new loan—which it is indicated is mainly for 0 public works —is to afford the. people the opportunity of thrift! To save up money in good Government securities 1 That is one way of putting

it, and tile thrifty would not bp badly advised if they follow the advice. Mr Massey is putting into practice some of that self-reliance he was disposed in former times rather to condemn. But the present loan is not the end—not by any means. Mr Massey foreshadows a larger loan to follow in the near future. Tt would be more satisfactory in every way if be made a complete pronouncement on tbe subject and gave the people to understand

exactly wiiat tne nnanciai position is. It is stringent, no doubt, but it is not hopeless, and it would bo better all round for a heart to heart talk, and a clear cut policy announced as to the future. The loan now offered is for a useful purpose—the development of the country—and there is plenty of

money in the country to make the loan a success. The people would be well advised to see that it is. The terms are on sound lines, and it will he to the financial credit of New Zealand if the loan is accepted by the people promptly, and funds provided to carry on the public works of the country without block or delay.

Tub action just suggested deals with the immediate present. What of the immediate future? Mr Massey’s forecast of a larger loan shortly will come to pass. As Minister of Finance ho knows the situation now, and he is Jayintr his plans. They cannot he all of a borrowing bent. There must he other ideas in his head. There will he the qriostibn of raising more money by taix'i^tjiort-—-that wifi bet inevitable. Whether this is to be a change or partial change, in the incidence remains to he seen. There will be most probably some new, and certainly increased taxes. The whole world finds this necessary, and New Zealand can hardly expect to be singular. As a matter of. fact- we have weathered the turn of the war in regard to taxation comparatively comfortably, and some measure of praise is due to the Coalitionists for the experience—though we do not see many nice things written in that direction just now. But there is a third

string to the financial position which must be pulled and that perhaps is the most difficult of nil. You may call it retrenchment or reorganisation as the fancy pleases you, but it is clear that for sound finance the country has got to live within its means. Mr Massey talks again and again of economy and thrift. He has got to- give a load. The actual conflict of the war is so far behind now that we are face to face with the problem of paying for it. Palliatives will not do. Spot cash must Ik; provided and this demand iis a call upon the resources of the Government of the day to foot the bills their administration l’s k’esponsiible for. That is the special 'task of Mr Massey and his colleagues to-day.

ActuMjLY New Zealand is in comparatively comfortable financial conditions, when compared with other countries, but the stringency here tends to grow tighter, and the favourable comparison will not be striking in a few months time. In April last money in the Ijcited States where the large gold reserves are, was at 6 nor cent, yet New Zealand to-day is going on th market at 5 per nnnf P.ll+. flin R nor f ft Tit 111 AlW' T"] -

ea was the minimum—month call notes at the hanks for loans went up as high as 14 per ''cent.! The credit system of the world is very sensitive in its ramifications, and it takes but little at times to vary conditions in a country for Rood or ill. We should bear that in mind, and we need not wonder if Mr Massey’s statement of our financial position, when it is declared ultimately,

disturbs the local market, and soncis up the price of money somewhat. Hitherto the finances were so directed as to avoid this, but tho three men who knew most about our finances —we might say four, in fact—are now out of the country, and there might he a break in the continuity of sound management which hitherto held tho position safe. In the northern hemisphere a few weeks ago

the mere announcement that the British and French Governments mere going to repay to the United States *-i hundred million on account of their joint- loans was a wonderful tonic on the money market. The ability of the nations to repay was never in doubt, hut their expressed intention- to do so by a set date had a wonderfully stimulating effect; and they began to make good by sending across on account, in March last a million and a half in gold. That was a modest sun) in relation to the whole debt, but the moral effect was as remarkable almost as if the full loan had been repaid.

Fuance, by the way, is making another remarkable effort to keep her credit beyond reproach. In-the Franco-German War, when she was mulcted in a tremendous indemnity, her people did the patriotic thing and saved themselves from the hated invader in a remarkably brief space of time. The latest war has left her with a more tremendous debt still, and with a devastated country,, and a decimated people. Yet France to-day is tackling the ultimate external problems whichl are a legacy of the war, in a most exemplary manner. In addition to meeting all the charges of the war, the country has to carry on meanwhile. For this extra task, £2-30,000,000 have to be found from taxation. • It is a great burden surely, but the new Ministry appears to be equal to the task. M.'Millerand, the Premier, has called to his aid experts in finance, and his Finance Minister is a. practical banker. Special taxation ihas to be imposed. The special classes include taxes on advertisements, electricity, gas, and so on, including taxes on sales and luxuries. There is likewise the depreciation of the franc to be considered, and in all the circumstances it will be seen how difficult the situation is, and what a heroic effort the French people are making to rehabilitate their country. Their action is at once an example and an inspiration, and it should give a country so fortunately placed as New Zealand courage and confidence to surmount its lesser financial difficulties. We look most often to the Motherland for a lead in dealing with these complex questions of finance, rind no doubt Britain stands out as a worldwide example, but in the case of France, suffering as she has from the waste and destruction of an invading foe, and making a wonderful recovery, the renewed sacrifice of her people for the commaend might well be regarded as the highest form of national service for the country’s good.

-Matt Kits are not mending in Ireland,

A condition akin to a state of civil war exists. Judging by the latest reports matters are now approaching their greatest and gravest crisis, - lieviewing the situation of Ireland in mid-April, Mr Ropnr Law, the leader of the British Government in the House of Commons, stated the pisition fairly and frankly and the snipe impulse seems to be guiding' thfr Government now. “We have come to the cross-roads,” lie said. ‘‘The condition if Ireland is very grave. It is a: condition which cannot lie allowed to continue. The Government must preserve order in Ireland and protect the lives of citizens; th*i Government which has failed to do that lias obviously failed in the first duty of civil government. We have deliberately come to the con-

elusion that the steps which we have taken in this matter are right and are justified by events.” When the House divided in the question, the Government’s actions in Ireland were endorsed by 152 to 50. Ireland has some cordial friends in America, and Mr E. R. Turner, Professor of European History in the' University of Michigan, has recently issued a work on “ England and Ireland,

in the past and at the present.” The “Triad” writer, Mr Frank Morton, so well and widely known, has reviewed the work, and the subject being so topical we take leave to reproduce his comment on the work and in regard to what is known a* tli'e Irish question. He writes:-,-” If you honestly want to understand the Irish question, here is a book that will help you enormously. Mr Turner has no bias for or against the English. lie states a ease dispassionately. He tells the story of England in Ireland simply, as it befell. In that story England has been guilty of infamous and hideous things. Every Englishman who is not absolutely a rogue, an, ignoramus, ir a fqol admits that. But Mr Turner goes on to show that England has of late done much to atone for the past, that the English tendency nowadays it to do Ireland the fullest possible justice. That point is one to be kept in inind. If there were to be no more war, settlement of the Irish question would be the easiest thing in the world. Ireland

could lx; loft free to work out her own salvation, she could ho a republic or whatever else she pleased. That would stop her clamours for a time, and incidentally save England a terrible lot of expense. But the matter is not so simple as all that. With the nations arming as busily as ever, with great numbers of the Irish bitterly and actively inimical to England, with the northern provinces savagely against disunion, with the certainty that the Great War has not ended war, England cannot afford to set up an absolutely independent Ireland as a constant menace to her peace and security. She cannot leave her Western seaboard open to whatever enemy Ireland chooses to work with against her. That must he clear to anyI body who really wants to get at the * truth.” However that be, here is the | best brief history of English rule in Ireland that we know.

])uring the week information has been distributed per medium of this paper of the greafj wealth of water-power in Canada ,and the industrial and commer. cial purposes to which it is being put. Hydro-electricity has helped tremendously to make Canada what it is. We are told from time to time that New Zealand is bountifully endowed by nature with sources of water-power, and some day a great treatise will be written on the storehouse the Dominion contains of this latent source of industrial and commercial wealth. Just at the present, New Zealand is only on the threshold of utilising its water power resources. On the East Coast of this

Island, and in the North Island, very large schemes are now under way. Locally there is the desire to harness the water power of Westland and turn it to practical uses. The experience all over the world is that where this comes to pass, there is material development and advancement. There is a move now to establish a Westland Power Board to set about the business of providing and selling electric power for any and industrial purposes. It is hoped the initial steps will he 'successful. Ihe establishment of such a Board is only the first step, but it is a most essential step, for thereby the machinery will be provided to go into tlie question ol probing local schemes as to a cheap and effective supply of power. It will be for expert engineers to supply the data regarding available sources of supply and their scope and cost. All this is very necessary preliminary work, and will ho the first step towards the main end in view. The power so derived will lid quasi-national in that it will he owned and directed by the people through, the controlling local body to he elected. There can he no question of exploiting the public or of undue changes. Whatever scheme is undertaken must needs he a large one as regards its ultimate expansion. There must he at hand the means to derive plenty of power, for we are persuaded that it requires only the electricity to l,e available and the demands for its use for industrial purposes will be sur* prising. This district should be able to supply the power as cheaply as any j other' part of the Dominion, mainly for the reason that the transmission .need not he of undue length. It is important therefore to get a concrete scheme on the stocks for the final acceptance by the people. _____