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Hokitika Guardian, 18 May 1922, Page 2

Those who were fortunate enough to hear Professor Condlifle’s illuminating address on Tuesday morning on economies, heard a very fine exposition of the subject which is the world problem of to-day. The financial issues of today are so numerous and complex that it is given to few of our public men nowadays to handle the finances of the country with success. The ordinary way* appears to he to trust to luck—to revenue coining into lsilnnce or exceed expenditure, and so getting through the year somehow. This is far too haphazard a method, and when we see the public and private debt, too, piling up, it is time the country had some better control of its finances than that of the direction of a Minister selected by chance from the Parliament. Just now there is a committee set up to deal with the question of taxation. That is an important phase of the country’s finance, but it is by no means the only phase for closer investigation. These are the times for scientific research in all directions, and it would be well for the country’s welfare if the science of economics were applied to the public finance. Professor Condliffe told the audience the other morning what was a fact, that Dr Bedford through the press at the outbreak of war, gave the country advice which if it had been followed out, would have saved the Dominion from tho financial stringency it \» now passing through, J» Brltftju (j

student of economics is attached to the Government to advise in regard to ar.ce, and the time is long overdue when thiijGcountry might hasten to do so, and tile act would assist in giving confidence to the people, that Some safe, guard was being taken in regard to the doings of tbe Treasury. • In the course of the address just referred to Professor Condlilfe covered n good deal of ground, but what must have impressed his hearers tiiOst Of all, wits the great incubus of private debt the farm lands of this country is carrying in regard to mortgages. He told his hearers that nearly ninety-nine per cent of the farm lands are under mortgage, and the aggregate amount of this plicate indebtedness is over two hundred and thirty six millions I The interest on this enormous sum is a great overhead charge for the land to bear, before the settlers tan began to make person- ! al headway. The interest will be not I less than twelve millions per annum. ! Also With regard to the public or na- ! tional debt, that amounts to over two ' hundred millions, and the interest burden is again tremendous. These heavy outgoings create a stringency that is at once obvious. The lecturer’s remedy for all this is production. The ■ land must be made more valuable, not !sy inllated values, but by production. It will be the only way to redeem the situation. It was comforting to hottr that Professor C'otldliffe belifeves Nfew Zealand can recover her financial equilibrium within a reasonable time, but ' an effort is called for. The country has to face losses in reduced land values. ; There has got to he u drop in prices— I it is inevitable. To weather these unI favourable events as they come along, | more and more must be produced to ! create greater returns to bring in more I money, and fd appreciate the credit of I the Country whereby it will not suffer undue losses by an adverse exchange.