Hokitika Guardian & Evening Star FRIDAY, OCTOBER Ist, 1920. REALISING THE POSITION.

Hokitika Guardian, 1 October 1920, Page 2

Hokitika Guardian & Evening Star FRIDAY, OCTOBER Ist, 1920. REALISING THE POSITION.

Counsels of economy from members of either branch of the Legislature are becoming fairly common now. The Prime Minster (Mr Massey) has repeatedly said that the country must produce more and consume less; tlio -.Upper House only the other day carried a motion urging upon the people and the Government the practice of economy;

and the other night Mr A. S. Malcolm, (chairman of committees of the House) spoke at some length upon tlie danger of depression that confronted the country as a result of the war. Mr Malcolm said he had investigated as well as possible in the brief time lot his disposal the effects of wars upon trade. With one exception, all wars of any magnitude had been fol Towed by very severe depression. During wars inflation and depreciation of tlie currency occurred; after the war depression supervened. The greater the war, the greater the inflation while it lasted, and the severer the depression when hostilities were concluded. Generally, the depression began about two years after a settlement had been arrived at between the belligerents, and borrowing for war purposes had practically ceased. Thus it would probably not be far wrong to sug gest that the depression, or tightening

of the money markets that would follow the Great War was due at the end of a period of some two years from the settlement. "What lie dreaded most was the prospect of such unemployment as had followed- other wars. Ho trusted that the troubles to lie met with in this case would not be so severe as the troubles that had occurred in the past. But at the same time it was wise to take warning from the past, and the Government and tlie people would be well advised to practise now the economy that so many wore preaching. It would be much kinder to think of reducing expenditure now than at a time when depression might have overtaken the country. It might be possible to effect economies in the various Departments of State without dismissing

officers. He did not know whether that would be possible. Another member had pointed out that possibly economies might be effected in travelling expenses; but in any event it would be kinder to the service and to the public iff economies were effected while employment was still freely offering and poverty scarcely existed. The Prime Minister (Mr Massey) had something to say on the subject opened by Mr Malcolm. He told the House that he liked to hear members advocating economy, but a member had only a, little while before urged with all the vigour at his command that the country should practice economy—and had wound up with a request for the establishment of State farms in his district. He (Mr Massey) would have liked to produce a return showing how many requests members had made during the past four or five months for the expenditure of public moneys. The only trouble was that such a return would cost too much to produce. Tt would be as big as a family Bible. Members talked about economy, and all the time they were asking for money and seeking new reasons for expenditure upon the districts to which they belonged. The Government, would show no favouritism. Tt \vouhl endeavour to do justice to all requests in proportion to the importance and urgency of the works asked for. whatever the district interested happened to lie. Mr Malcolm had said that the travelling expenses of Departmental officers Plight be reduced. Tt was, however, important that officers should

move attorn me country neeiv tor purposes of supervision. Retrenchment in the direction suggested bv the member for Cluthn might only lend to the necessity for heavier expenditure. The increase in the cost of living had served to increase greatly the travelling expenses of officers. This academic discussion, it might he said by way of comment is all very well, but the speakers were revolving round a. circle and not getting anywhere. Mr Massey recognises the position, yet .lie fails to deal with it. He reproved members for asking for money, but his best answer would he not to grant applications wholesale but deal with requests ec-ono-minnllv if nnt nitronrdlV . Also With

regard to departmental expenditure wliicli has grown to such a huge sum, the Prime Minister’s reply was not effective. The complaint made by Mr Malcolm was obviously correct, and the least the Government could do would be to realise the position for themselves and set about' retrenchment in a practical manner. Till there is a genuine curtailment of administrative expenditure. there can be little hope of a fall in the taxation, the demands of which are so heavy now as to play no small part in keeping up the cost of living. As the Government must realise all this, it is expected of them that the relief should be given the people.