Hokitika Guardian & Evening Star MONDAY, JUNE 28th. 1920. MAINLY MONEY.

Hokitika Guardian, 28 June 1920, Page 2

Hokitika Guardian & Evening Star MONDAY, JUNE 28th. 1920. MAINLY MONEY.

There is a note of pessimism running through the Governor-General's SpgtcJi 'llls political situation is overshadowed Ly till.- financial, and for this reason, we have riior#! vptfgp (Jovofed to money matters than to political proposals. The pessimistic note is indicated by these two sentences from the Speech:

“Tlie Government is faced with demands for expenditure far beyond anything which the revenues of the Consolidated Fund can meet. Our fjaLy resource is to borrow within our own borders.” Admitting that the demands arc extreme. there is surely an indication of- | bankruptcy of statesmanship is tlio “only’' remedy the Government pots forward. Tn point of fact the whole Speech lacks die spirit of tile nation, and presents a condition of affairs which is perhaps net altogether surprising with the present Ministry. The ■Government is palpably weak iri brain power, however strong the party may he in votes. The Government has the political strength to struggle on, hut wliat sort of a, mess will it make the country’s affairs? The Government appears to have, made up its mind to concede all the demands made upon it. even though such demands go beyond the revenues of the country. This may- be political'necessity perhaps but is it commercial honesty? The Government is offering to concede what is has not the means at its disposal to give. Yet it has one resource —to borrow, and it realises tlrflt it must borrow within its own borders. But what if the moneyed man and ;n----stitutions will not lend? All the concessions will be like so many dishonored cheques—no funds to meet them. To borrow for all this and keep on borrowing will lan,] the country in great financial difficulties. Tn order to get the money, the investments must he made attractive, and when this spirit of competition begins, the gilt edged glitter of New Zealand bonds will then be

tarnished somewhat. It means competition with the borrowing States and Federation of Australia, . and in this race our interest payments must rise enormously. The financial situation promises to be made more, complex because of . the lack of initiative on the part of the Government to deal with the position. The Government is going the pace, admittedly so on its own statement, and there is no policy put forward but to borrow to save the situation. Was the political position in New Zealand ever in a more bankrupt condition for lack of ideas, of leadership? The Government is prepared to go on granting concessions and increases, Ministers lacking the courage fo come forward and cry: “Stop, this cannot be.” We have commented all along on the neglect of tiie Government to take the country into its confidence, regarding the financial position, and all the time it has been growing worse and no effort made to retrieve it. 'Hie Government which comes after will have a thankless task indeed to make good the neglect of the present Ministry. And yet Mr Massey and his following never had a greater opportunity to serve the country, if with boldness and determination they sought to redeem the position. genuine effort were made the people perforce would he behind them to save the financial credit of the country. ■ '