Hokitika Guardian & Evening Star TUESDAY, AUGUST 10th, 1920. ECONOMIES OK TAXATION.

Hokitika Guardian, 10 August 1920, Page 2

Hokitika Guardian & Evening Star TUESDAY, AUGUST 10th, 1920. ECONOMIES OK TAXATION.

The Financial Debate which ended so abortively failed to touch the real needs of the Dominion in regard to reform in Finance. The Statement itself talked of public economies, but they are not forthcoming, neither is there any sign in the reduction of taxation. But there is to be more and more borrowing, sending up the national expenditure, and adding greatly to the burdens of the people. The figures of £he statement showed how seriously the position was growing. There is certainTy a call foij economy, and this should he undertaken by the people as well as tip Government. It is for the Government to gjvp a lead. Without an effort to stem the situation it can only grow from bad to worse imposing more and more taxation. Taxation is a menace to thrift, which is the real tapping stone to national prosperity. Yet’lmre pre those who would

destroy the foundations of thrift by the threats of levies on capital or by compulsory contributions to loans, Irrespective ,o.f the yalue of tbe bargain to the lender. If it were a case of dire enmrgPPcy for the natjiop, as in the jtime of war, compulsory levies could jbe appreciated, but if the need fpr the money is merely the mismanagement of the country, and the fact that ti ho ment is exhausting its taxation proposals and cannot borrow money on its own terms, it is disposed to trade upon the thrifty position of the people. With financial, affairs in this chaotic condition it will be seen how unfortunate it was that there was not time for a full abd free criticism of the Budget and Tits defects. long as the Government can meet its immediate requirements with some degree of comfort, it is proposed to let the main question drift. There is nothing in the way of outlook indicated in the Financial -Statement go-

verning the future. That is deferred to take care of itself. Still, many new millions are required this year, and the Government will require to find the money within a limited p.eyiod. On the Estimates There has been some discussion of this viewpoint by Colonel Mitchell, and others, who realise what tne present drift might mean ultimately if attempts to arrest same are not made betimes. The economics which are rereferred to so vaguely in the Budget must needs he practiced vigorously, but as yet there are no signs of the directions in which the necessary reform will l>e initiated. As to the taxation that is making its appearance in practical shape already. A greatly increased revenue is looked for from tho postal and telegraphic changes which are such an advance on the old rateß. The increases in railway fares and freights are to come this month. Other readjustments are being made toy a finance committee, and the people will have to pay. But this method does not grapple with the growing debt ,of the country which is mounting up so rapidly, and apparently the position will hpvo to grow more acute before those charged with the country’s affairs will realise where the drift is leading to.