Hokitika Guardian & Evening Star SATURDAY, NOV. 27th, 1920. THE WEEK.

Hokitika Guardian, 27 November 1920, Page 2

Hokitika Guardian & Evening Star SATURDAY, NOV. 27th, 1920. THE WEEK.

At the Chambers of Commerce conference which opened at Wellington this week, the need for economy was stressed by the Minister of Commerce (Mr Lee). The speaker however cofuld not see at all clearly the beam in his own eye as a member of an extravagant Government, but could perceive the moat in the eye of someone else. He agreed that genuine economy was desirable, but offered no explanation to indicate that any State example was foreshadowed. The conference itself carried a motion on the suggestion of Wellington Central Chamber which showed how strong the commercial section of the community feel about Government extravagance. The motion agreed to was: “That in view of the steadily’ increasing taxation, despite the urgent necessities of war having coased the. Conference expresses its (opinion that considerable economies can be effected in Government Departments, and urges upon the Government the necessity of taking steps to reduce wasteful expenditure.” Expressions of opinion of this nature show the trend of public feeling regarding Government administration.

The six million loan was to have closed in the ordinary course this week, but the time has now been extended to mid. December. The Government must feel rather certain of raising the amount required, for the publicity given to the loan has been restricted. No doubt the Government relies on the fact that if the amount is not forthcoming voluntarily, the amount needed will be levied compulsorily. Consequently many of those likely to be affected if subscriptions are not forthcoming, are being circularised and this step is having a salutary effect. The lonn is required for the aftermath of the war, to help to make good the promises to the soldiers iii Hading thorn land and homes :upon and within which they can settle down. There is one the lending branch to which all folk, and particularly those of a thrifty nature, should give attention. That is in respect to the Post Offifce certificates. For 15/4 a certificate for £1 in five years can be procured, while for 11/9 a certificate for £.l in ten years can be obtained. This should, be an attractice investment for young folk who while helping a worthy cause, will provide a nest egg for themselves a few years hence.

Tiie political atmosphere lias not been disturbed much since the late rising cf Parliament, but some stir 5s being created by the announcement that two Ministers are going Homo in connection with conference work. Mr Massey as Prime Minister has the first and major right to go, but he has elected not to go. His freqjuent visits Home of late, combined with the accumulation of work ho had. to tackle on, his return, have left him indifferent to another trip. His two principal Ministers, Sir William Herries and Sir Francis Bell, are now being named as the substitutes for Mr Massey. Next to the Prime Minister they are the two chief pillars of the Reform Government and their claims being on a par, 'iinv difference of opinion about choice has lieen determined, by selecting both for the mission ahead. Both are capable men in their own spheres, and will ably represent New Zealand wherever they go. In many respects they might do better than Mr Massey though not enjoying their leader’s prestige. Under all the circumstances Mr Massey lias acted wisely in deciding to remain be-

■ hind, and there is a good deal of wis- ■ dom also in his choice of substitutes.

, No doubt New Zealand will bo anxious 1 to go on to the London money market pt the first favorable opportunity. Early • next year a further substantial loan has to be called for and probably it wi 1)1 be placed ifti Now Zealand. It will be for general purposes including redemptions, and as it cannot he coin- ! pulaory, it will roquiro to be made more attractive to the public, and this is where the test Massey’s finance will coine in. The present loan , which is compulsory is at 5}%. Lo--1 cal bodies cannot borrow at this rate ( now—or .at all events they are not able to get anything like the money they need. If the Government is forc- ! ed to put up their rate of interest, it fol- ■ lows money generally in New Zealand will become dearer, and this will ope--1 rate adversely in regard to industry and enterprise. In Australia and Lon- ! don the State governments are offering | equal to 65% for money, and having a lot of trouble to raise small loans. New Zealand will he forced up to the same rates and we will not enjoy the enviable position we held formerly.. The i nest egg Sir Joseph Ward saved up • during . the regime of the National Goj vernment went as soon as he was out of ! the Cabinet, that stand by missing now :is much to be regretted.

Next year, 1921, will be a very heavy year in the way of renewals of loans. Over ten millions of loan money matures in the coming year, including the first of the iyar loans issued in 1916. This money was raised at a. lesser rate of interest than it will be possible to find redemption money, so that in any case the loan burden will increase. Ufitil this year it was not necessary to go beyond 5% for interest. The bulk of the money had been raised at an average of about 4%. With a prospect of 6% or more ahead immediately, this means a tremendous increase in the annual interest charges, which entails finding more money and receiving less in return'. , When the present Government weiit irito office thei rate of interest per head of the population was £2 9s 3d. Last yes/r it was up to £5 9s 2d—more than double, and subsequent years are gjofng to how still .further advance. Finance is not one, of the strong cards of the Reform Government. That was shown when Sir Joseph Ward was called to the office of Finance Minister during the war period, hut unfortunately the policy lie laid down was not followed up. The country when it feels the financial pinch, which is coming, will expect the Government to e ase the situation, but at the moment there is no sign of any possible relief.

The encouraging news of a week ago about the improving conditions in Ireland was badly discounted by the happenings recorded in Dublin this week. The situation is more deplorable than ever, and it can but be hoped the latest excesses represent the final extremes which will be reached. Nor was the debate in the House of Lords at. all helpful towards a final settlement. -There was a sharp division of opinion among the critics in the face of the extreme conditions brought to light, and no genuine outward effort to reach 'a solution of the trouble noticeable. We cannot think that this attitude represents the true English feeling on the matter. The Irish problem s complex and difficult to comprehent, but the British as a justice-loving people want to do the right thing by Ireland. Neither side appears to understand each other, and what is > worse, makes no effort to do so. The pivotal difficulty appears to be that there is no stable authority to speak for those responsible for*the outrages which are the germinating cause of the serious trouble, now intensified by the reprisals. Naturally no oneihvill come forward to avow individual authority for the murders but there might be other ways of of overcoming this through responsible intermediaries. If through, civic authorities in seme of the Sinn Fein strongholds, or through the priests in the districts, it could he possible to obtain intermediaries, there might be the means afforded of leading up to a settlement. The Government has its part to do—and it should be done without protracted delay—of placing the Home Riule measure on the statute book. The act would afford a basis from which a new • beginning might be made, and starting on a well understood platform, a final settlement could be evolved. Reform in the government of Ireland, must c ome now necessarily, by a process of evolution. The Irish people as a whole have got to prove their ability to govern themselves—for in this connection the two factions of North and South are involved—and a fusion of the parties can come only in time. Let us hope the limit has now been reached in regard to excesses and that the energy and resource of the people will be turned quite effectually in an opposite direction.

JN the Argus of yesterday there is agaii a long dissertation on forestry matters, without supplying an adequate reply to the financial position detailed by this paper. We have charged the Forestry Department with boing a too costly un-. dertaking on the lines px-oposed, and something far beyond the resources of the country if the conversion of the forest into timber is to be considex - ed economically.-' We have shown how the former statement of the Greymouth paper as to an alleged cost of three farthings per acre for administration is fallacious on the Department’s own figures, and that generally an enormous burden will be put upon the country and the people who xiso the timber—for the sale price must advance if the Department is to make any showing in balancing accounts. Indeed the Argus admits this for it says naively the State may provide against any loss. This can be done only by increasing the taxes on on the millers abnormally and tho millers, if they are to continue, will pass that extra sum—and we submit it will be a very substantial sum if the accounts are to balance—on to the using public. Therefore the people pay for an extravagant Department in two ways—through general revenue to help to make good tho annual cost for salaries and to pay interest for money borrowed to develop forestry; and secondly for the privilege of using timber at a much enhanced sale price. Incidentally we note that the Argus seems to speak' on this occasion with certain veiled au-

thority. There are some statements it makes which if" they bo fully accurate can come only from an official source. We do not pretend to have that class of information at our disposal, but have judged the forestry policy from the Minister’s own enunciation of it and by

what has been put before Parliament officially. On these public facts we regard the forestry policy as now being initated as a very expensive toy and a serious risk to public interests. The Argus on a former occasion called the forestry policy “a wild-cat proposal” and “a menace” to the West .Coast, and the paper expected the people to agitato unitedly to remove the danger there was to the industry in,, general, and to the miller and worker in particular. Indeed the Argus looked further and saw that other aspects of Labour, including the watersider stood in danger. Those opinions were based as ours are still —on the statement of the Minister in charge of the Department, who, everyone knows, is the responsible person to speak for and on behalf of the policy directed. What the Argus said formerly was the unanimous view of all connected with the industry who had gone into the issue at stake seriously. Since then the cost of the policy so definitely enunciated by Sir Fran cis Bell, has been brought home by the figures produced to Parliament and the demends made for money. This fact which cannot he baulked —for the huge amounts asked for have been granted-p confirms our clearly expressed View that th o cost 0 f the policy will he for too extravagant for the country to hear, and that in a dual way the people will be paying for the privilege of an expensive Department when the same ends can he gained by substantially smaller cost for departmental control by a less ambitious scheme of. administration.