The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, APRIL 22, 1926. RELENTLESS ECONOMY.

Hokitika Guardian, 22 April 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, APRIL 22, 1926. RELENTLESS ECONOMY.

A modkst telegram from "Wellington the other day conveyed the following important message to the people of New Zealand :

In dealing with the question of the Dominion’s finance, the Prime Minister arid that there is no reason for .alarm, but they would have to exercise caution in their expenditure in the near future. “No official figures have yet been made available for publication,” ho said, “but the

balance for the j>;i st. trade year will ho against us. That is, our exports "'ill not lie equal to our imports. That, being tho disc till interested in the Government, the local bodies, and tho private enterprises will have to exercise caution and economy in the future.” This of course Is a twict!-tdid tale that is, siiice the general election, Ministers, bankers, ami editors hitve been booming the message out for the information and the car of all. there at'e not ntaily signs that liifc warniitgs have been tiikeh seriously. The warnings are there, but there is no example offered of how the financial edifice should be put in order. No lead is given. Ivxpendit tire goes on as usual. The Prime Minister is getting tilings done his own way all the time. He announces an early effort to borrow a few more millions—as many as it. is safe to go on the London market fol 1 . 1f on giving the warning nlioVTi quoted, Mr. Os it es added his scheme t<i iijipiy io the public fiiiaiiee "‘to exercise the caution and economy" lie deems requisite, there would he some point about his remarks. He must needs say and do something to make the people sit up and take notice, or the drift will go on—from had to worse. Not so long ago Mr. Coates hinted at economies in the Public Service and when ilie Kdon election was in full swing, tlie Labour Parly tried lo make political capital, out of the I*i into Minister's remarks by taming ilie Government with proposing to cut things down ruthlessly Mr. Coates promptly denied that any such tiling was intended. but his denial did not save the seat for the Government. Probably his reply cut both ways —he lo»f Iroin Civil Servants and Government employees because of the fgar of the retrenchment policy, and lie lost votes from tlie tax-payer who was disgusted with the Government for not taking the bull by tho horns, and in piVicUoO wn.’it it was hinting at in speech. Mr. Coates now tells us that the exports will not. balance the imports; that is, there will he an adverse trade balance. But realising this important position, there is no suggestion as to what will be done, what lead tho Government will give to encourage local bodieH and private enterprises to lieip stem the position, The last Prime Min inter who had the courage to fitco the Utiaiicihl stringency and pull the country through by bis practical eeonohiieS, bail short shrift Whell Hid t'uixt general election came aiong. Probably Air. (Abates recalls the fate of Sir Joseph Ward for doing his duty and is chary to incur the displeasure of the voters. But if the. drift now is as the Prime Minister says, tho drift is going to tie worse later in the year because of the falling; values of primary exports. The financial situation must grow wor.se, and Mr. Coates cannot expect to have the luck Mr. Massey did with his finance. Only once in a genenation can tilings so fall out that fresh agencies suddenly arrive to redeem an apparently impossible situation. Sooner rather than later the ruthless economy which should have been practised ere this, must bo brought into force and something material attempted to redeem n position which needs must be saved. The drift may not go on indefinitely —that menus a more serious stringency still—and the quicker the inevitable is realised and acted upon the better. There is room as there is need for action in the matter, and economies must come now—not in the future