A Serious Indictment.

Hokitika Guardian, 10 November 1922, Page 4

A Serious Indictment.

■RECKLESS BORROAVINC

(Mercantile Gazette). We think that Air Massey’s borrowing and spending policy will assuredly land the country in trouble. If. in theprivate affairs of life, a man, or a company is noted for recklessness, entering into all sorts of commitments, and becomes involved, instead of cutting down, retrenching, and reducing on every side, he or it simply borrows from anyone who will lend, and attracts supplies by offering high interest rates, the position becomes worse and worse, until bankruptcy is inevitable. During the last twelve months Mr Massey’s Government has borrowed five millions and now, in the closing days of the session, power has been taken to obtain another four and a half on loan. The interest on the first means that the taxpayers have, to find £5,000 every week—about the same amount as they pay to cover the expenses of the “Chatham” —and the , fpur and a half millions for which authority four thousand pounds per week.. This sort of business has to go on for another few years and the interest charges will be more, than can be found. Theoretically, the money is supposed to be used for works which 1 will .contribute the interest,, practiI cally, they do nothing of the kind, the providing of the money to meet the sinking fund and intorst charges, there fore fall upon the hacks of the taxpayers. Unless the taxation now imposed upon the country is reduced,, no upward movement of any importance is possible, and most of the taxation is taken from companies and business men .naturally, they are not disposed to exert themselves, or to risk their capital for the purpose of giving Air "Massey money to burn. The result will lie that the revenue which the Government will receive from incometax must shrink year by year, and the higher the rate imposed the less will fie" paid into the Treasury. Conversely, as the rate shrinks, the great- | er will ho the revenue. AYe recognise that unless Mr Massey reduces expenditure. he must got in the same revenue as lie receives at present, hut an ordinary business man would reduce his outgoings at any cost if he found that his capital was m peril but the Government acts upon a

principle which is exactly the reverse. AA’h'eh money is wanted for any pur- i pose, it simply rushes off to London | and pledges the country for a loan. It would lm the best thing for us all, ( if all borrowing, local or Dominion, was stopped for at least fiv# years, and let those clamouring for public moneys to be spent in their districts he ini’ or mod that until the financial position clarified, no more money would be available. If the public realised that it is the Government taxation which makes the cost of living excessive, which is directly responsible for unemployment, and that conditions will not'be better until less money is taken from the people, they would imho so ready to applaud every time the Government directs the House to authorise the negotiation of further loans. And it must not l>c forgotten that every million of money borrowed |,v the Government brings the spectre of poverty nearer to thousands of homes throughout the country.