The Hokitika Guardian THURSDAY, JAN. 5th, 1922. SETTLING DOWN.

Hokitika Guardian, 5 January 1922, Page 2

The Hokitika Guardian THURSDAY, JAN. sth, 1922. SETTLING DOWN.

Tiie Dominion will bo settling down this week into its pace for the New Year. On all sides the country is being warned in regard to a difficult yenr financially. The time appears to be one for courage and resource. The world has been very much upset of late, and New Zealand up to the present has been very fortunate in escaping a. great, deal of the aftermath of the war. But now with declining prices for the staple exports of the country, the farmers and graziers—the pastoralists generally—are feeling the acuteness of the money shortage, and this experience is now being reflected over all the country. Some indication of the financial position, has been given by the falling off in investments on the totalisator. The decline in some of the North Island Clubs has been very heavy, but while this is so, it is satisfactory to note in most eases the the figures are above pre war totals. When the holiday season closes this week it will be interesting to compare holiday figures of 1914-15 with those of 1921-22. There is no doubt the comparison will be in favour of the latter period. But this does not excuse any neglect of the Dominion situation as it is now presenting itself. The banking and commercial authorities have been warning the people for some time to expect some lean years. It is predicted that both this year and next year will be of the lean order. This conclusion is reached because the prices, of wool, meat and dairy produce cannot recover themselves to any marked degree vithiri that period. In various markets there is a great congestion of products, and these have to he unloaded, before the market itself can show an upward tendency. The situation will he rendered more delicate by the difficulty of many large concerns to finance their clients over the difficult period ahead. The Government is endeavouring to grapple with the meat question, but the course is merely a palliative for the producer. The consumer which is the public generally, sees no hope of relief; rather will his burdens of taxation be added bv the cost of financing the pool. At the moment the Government has to face the most serious financial problem it has vet encountered. To raise necessary money in war time was simplicity itself, compared with the delicacy of the pre-

sent issue—to attempt to finance the country with reduced income, involving necessarily a reduction of taxation. The occasion calls for a special effort. There were no signs during the present session that Parliament was equal to the occasion. Its very importance—the solvency and integrity of the country—suggests that Ministers will not be discharging their whole duty unless they explore every avenue possible of affording relief- In the time of war stress, it was deemed expedient to- create a National Ministry to help pull the country through the ordeal. In regard to the financial issues, the Coalition Government did successful work, and the thought arises now whether the present momentous time is not occasion enough also for a National Ministry to tide the country over the difficulties ahead. When the session resumes the country will await a lead from the Government on matters of finance. It is imperative that as far as possible the activities of the country should be maintained, but without some special re-organisation of the national finance there will bo a difficulty to accomplish what is so very desirable. The matter is a serious one in which all classes are concerned and on all sides there should he a helpful spirit to assist in solving the delicate issues to be encountered.