Untitled

Hokitika Guardian, 12 April 1928, Page 2

In the thought for the times to-day there is recalled a statem'ent by the present Minister of Justice, Hon 110 - Ic.ston. made before entering the Cainnet. wherein lie took a very pessimistic view of the great outpouring of money in tlie North Island for hydroelectric works. Since those salad days, Mr Ilollcston has joined the Ministry, and he has become tongue-tied on flic subject of reckless borrowing on which be was formerly very outspoken. Hut His views are as sound to-day as five years ago. for the country is still borrowing at a rate which leaves no possibility of a- financial recovery. It was to ho hoped that the presence of Mr Rolleston at Cabinet meetings would tend to restrict tho pace for borrow-

ing, hut as things are progressing, it appears New Zealand is as ready to borrow as over—which means whenever the money market is favourable. The Dominion has rather a better reputation than the Commonwealth—our neighbours—where it lias been remarked the country will soon he borrowing to pay interest on previous loans! That of course, means financial chaos and we can only hope tlmt Mr Kolkrdon is keeping a vigilant eye on the progress towards such a catastrophic ending and will save the Dominion by a timely warning from so disastrous a result. It is clear, however, that by steadily piling up the national debt, it will require more and more revenue year by year to meet our financial obligations. Even if more taxation is not added to pay our way. it is obvious none can lie taken off. and already there are complaints that certain interests are overburdened with taxation, and a “let-up" is the one thing desirable to bring about economic results. The taxation burden is a contributing factor to slump or unemployment conditions for the reason that tMints which would be available tor trading or commercial purposes, now goes in taxation, and that In turn is exported out of the country to pnv oversea liabilities contracted by the steady borrowing going on from year to year. At present the Government has authority to borrow large sums, and would do so were the market favorable. The annual charges on account of borrowed money are very heavy indeed, and there is no indication of a financial policy on proposals to meet the obligations other than trusting the future to brighten up, and increased Haile to give more revenue. It is very much the same with the hydro-electric schemes!—their ultimate success depends on the business which can l:o done, and any shortcomings must he shouldered as cheerfully as may be by the taxpayers up and down the Dominion, whether favored with the power or not.