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Hokitika Guardian, 31 October 1922, Page 2

This reported financial assistance to farmers’ ro-operative institutions indicated 'by our parliamentary correspondent yesterday, supplied serious food for reflection. It is not so long ago several of such institutions were calling on the public to take up debentures in the various concerns at attractive interest Tates. The result substantial though it was. proved to 'be the veritable drop in the bucket. fi R some of the balance sheets of the companies later revealed. The next phase was [lja lijlnyjfv displayed, p.t ?r,mp of thf?

annual meetings where the folk chee.ed to keep their spirits up! Then we had the company moratorium legislation brought down and passed by Parliament, and there was a sigh of relief that the worst was not so bad after all. Still, even '.by Government organs, and notably the Auckland Herald, Mr Massey’s action was seiiously reviewed, if not condemned actually. Now comes financial assistance direct from the public treasury! This will call forth very serious criticism The country has been deluded all along and it is a question now if the woist is known. Further there is the large principle involved, Tffat if other concerns are in financial difficulties where is the Government to draw the line? This manner of propping up institutions the cause of whose position is

probably reckless trading in overbuying. and too liberal advances without reserve security, is beset with many dangers. Palliatives will not necessarily save the situation. Indeed it seems on the face of it to make confusion worse confounded, and the State appears to ho heaping up a load of more difficult times by thus trying to buoy up a position when it is really in a sinking condition. The matter is far too important to be sprung on the country at such short notice. It is a species of legislating in haste and repenting at leisure, and is further evidence of the ill-digested legislation the Government brings forward in regard to financial matters.

Whrn the Reform party was in Opposition it was the custom to bewail the alleged extravagance of the Liberal borrowing policy. As a matter of. fact it was a self-reliant policy in which borrowing needs-were kept at the lowest. But even at the frugal minimum the Pharisaical Reformers used to lament the situation and hold up their hands in hollow pretence that the country was galloping to a deficit The thought for the times to-day indicates something of the pace the Reform Government has been travelling in the borrowing market. During the past ten years Referom has been in office, the average rate has been well over fivo millions a year, and there is the further knowledge that this year greater authority to borrow still, is being taken. Tn the five years Sir Joseph Ward was in office ns Prime Minister,

liis total borrowings for non-productive works was under three millions and a half. And the remarkable fart was that though they criticised Liberal borrowing, lO’ tor in voted foi* every loan except one small loan for nationalising -the water powers of the Dominion. The high offence Deform has committed in its excessive lion-owing is brought home to the )>eople by the tremendous taxation now imposed, both directly and indirectly whether it is dearer postage, more costly telegrams. or a levy to enter a place of amusement, or the killing income and land tax on the struggling producer. Every year there is ail enormous amount of money going out of the Dominion in interest charges, and no policy is brought forward to check borrowing or to materially reduce the del"