The Hokitika Guardian WEDNESDAY, JUNE 14th, 1922. THE FINANCIAL PROBLEM

Hokitika Guardian, 14 June 1922, Page 2

The Hokitika Guardian WEDNESDAY, JUNE 14th, 1922. THE FINANCIAL PROBLEM

Tub arrangement of the finances oi tin country continues to he the most pressing business of the Government. Every appeal to Ministers elicits the reply that money is not available, while often Ministers advance the information themselves in anticipation of monetary requests that funds are not at call for anything other than the most pressing i equiroments. The financial problem to-<lay is the most difficult which has faced a New Zealand Government,, bat the Ministry cannot he excused ir. m all blame on that account. The Government when money was plentifu., drifted with the tide -like the people at large. There was no thought of thrift. Nothing was too large to undertake, and (li|j'e nment was generous in the extreme with : II they had to contribute. Departmental expenditure not only soared up, hut was inflated by an excess of staffs. Personnel and sala.ies increased by leaps and bounds. New Departments were created, and lavishly staffed. Expenditure in all direct! ns wont ahead, in something of a scat-ter-cash way. .Subsidies were paid out readily to support artificially a state of prosperity which did not exist in fact. When the impending crash came, i he Government was slow to act. The position was realised clearly enough, but there was too much talk about what should he done, rather than action in what required to he done. Thore was temporising and more subsidies, and a falso position was created. Then when the Prime Minister went off to London one of his colleagues left in chairo of

the linances, suddenly discovered the Treasury was empty! It was a. laphazard way of learning the truth, but the statement was all too true, and ; in- country has had to accept the inevit•:}>!<* eyor since. The worst is now happening. High taxation imposed to carry on the war. is being raised higher still to assist in meeting the demands of peace time, inflated as they are by the extravagances of the war period. Mr Massey is still looking for further means to raise taxation, rather than for ways to reduce the impost. And while taxation is so high, not only is expenditure maintained at an unduly l,i L ,h level, but revenue is falling--des-|,ite the increased levies in taxation. The Dominion is being over-wrought by the sustained high taxation which is draining financial resources. Money which might remain as capital for business enterprises, or be used industrially for trade expansion and land development. is t ailed up to help replenish the Treasury, where the money goes into unproductive channels. The Government tries to stem the tide wit.i oi-n----sional loans, but these »ro of little ult». im.to avail, for tliey add to the annual burden of money which has to l>c foim 1 by the taxpayer, and at the best are hut a temporary palliative to meet immediate necessities in the least uncomfortable way. The great need of the country just now is reform in its financial methods. The Government has set up a taxation committee, but Mt Massey says he will accept its recommendations only so far as they suit the Government ideas of taxation. The committee is not likely, in such circumstances. to be very useful in solving the problem. It will remain for the people to boar this all important matter m min i when the general election arrives .in,| seek to enforce a change which will ensure a more stable form of finance whereby there will lie some hope of emerging from the welter of debt, and setting the house in order so that some relief front Ihe heavy burden of taxation will result and some measure of financial release from the serious problems now presenting themselves he provided.