The Hokitika Guradian MONDAY, AUGUST 21, 1922. THE FINANCIAL POSITION.

Hokitika Guardian, 21 August 1922, Page 2

The Hokitika Guradian MONDAY, AUGUST 21, 1922. THE FINANCIAL POSITION.

The criticism passed on the financial position of the Dominion, as revealed by the Financial Statement, is all indicative of “rocks ahead.” Mr Massey is plainly impressed with the situation which has been drifting from bad to worse for some time. But though impressed, the Rt. Hon. Minister fails to offer any constructive policy to meet the serious position. The economics for which the Prime Minister ttkes so much credit, are largely on paper. 7'he

actual figures of the expenditure do not reveal the savings the Departments are claiming. The Statement was remarkable for the lack of policy proposals tor the immediate future. The Government it would appear is bankrupt in ideas to retrieve the position, and the drifting is to go on. The only palliative is more borrowing and the keeping up of taxation and the high charges for railway and postal services. Some very outspoken criticism is being passed in regard to the outlook and alluding to the alleged economies, one paper remarks that as the pruning knife has not been equal to the occasion an axe is suggested to take its place. But retrenchment alone will not save the country. A constructive policy is necessary for a condition of affairs which has long been obvious was inevitable. The Government of the day needs reinforcing with financial talent. Just as it was essential when the country was in the grip of war, to have a, National Cabinet to co-ordinate and help to pull through, so it seems as essential now to look for a National Cabinet to save New Zealand from financial disaster. There arc rocks ahead in that the expenditure exceeds the revenue, that taxation is beyond reasonable limits; that important departments are leaning on the consolidated fund; that loans arc falling due for repayment to serious amounts, that despite all those difficulties further borrowing is being resorted to. For the next four years in particular huge sums of borrowed money are falling due for repayment, and this impressive liability will contimie to be a disturbing factor in the finance of the Dominion. The current financial year according to the estimates,. shows a deficit, to be further increased by the snplementary estimates still to be brought down. Whatever the result of the coming general election if would appear inevitable that the finances of the country will have to bo treated from the national and not the party standpoint. The credit of the country must come first, and it is of the greatest importance to see the credit stabilised and assured. The present occupants of the Treasury benches have not proved equal to the task. The Government has lifeen living on the surplus fund created during the time Sir Joseph Ward was Minister of Finance, but that fund owing to the unabated extravagance of the Government is being rapidly depleted, and the time is at hand to prepare for ways and means in a normal and regular way. without the serious anxiety that now surrounds the country’s finance. It would appear certain that when the general election is out of the way, the Government will need to face the position more heroically than at present, and sonic drastic action will require to he taken. The real measures to be pursued could he better attempted by national action than a party move, ami something really comprehensive must bo done. The coming debate in the House tais week will ventilate -various aspects of the case, and help the people to rear liae the serious import of the present financial position of the country.