The Guardian And Evening Star, with which is incorporated the West Const Times. WEDNESDAY, MAY 2. 1928.

Hokitika Guardian, 2 May 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Const Times. WEDNESDAY, MAY 2. 1928.

DOMINION FIN-vNCE. TnF. Minister of Finance in his presessional address at Cambridge on Monday night, was able to announce a small surplus. That is good, ns far

as it goes. The report of the speech as telegraphed i> lacking in details as regards a general policy for the country. In regard to finance, the policy is to borrow, and keep on harrowing. There was an increase last year m the national debt as usual, and another live million loan looms on tho horizon, and the Minister look consolation from the fact that it was a

million less than last year. Ihe Minister emphasised "the rigid control” in expenditure, hut this it appears was confined solely to keeping back votes which !’at!iaincut in good faith had been asked to sanction. This is a practice far too regular, and it is to lie feared it is through this channel where the spoils to the victors generally finds its way. Favoured localities have no difficulty in securing votes for expenditure, hut less favoured plates, when applications are made, are met with all kinds of official excuses to delay expenditure. It might ho thought that having gone through the process of official scrutiny belore being placed on the Estimates, the votes once they are provided for by Parliamentary appropriation, would lie secure. Rut this has long been exploded by actual fact, and is one of the processes by which departments hold up works, the. appearance of which on the Estimates should he proof sufficient of their necessity. Customs’ duty provided an increase in excess of the estimate closely approximating the actual surplus, so that it is apparent it is a useful revenue producer. While it is all that, it does not appear that it is particularly helpful to the secondary industries which, under the principle of protection il is intended to he of material aid. It is evident the Government is using it first for revenue purpives. and in a secondary way only as a possible benefit to local industries. The .Minister’s reference to his consultations with the New Zealand hankers, suggests the material part the latter are playing in regal'd to the recovery of the country from slum]) conditions. The hankers by restrictions and limitations of overdrafts and increasing the cost of overdrafts, have done a good deal to limit imports and so checked materially the outflow of money from the Dominion. On the other hand, the increase in price and volume of primary exports has worked in with the hankers’ scheme very happily, and an improved trading balance as affecting the relative values of imports to exnnrls. lias resulted. This is obviously to the advantage of the country financially, and the hankers are maintaining their policy of restricted trade overseas. Tf production and prices are maintained for the country's exports, finances must further improve. Rut this is only one aspect of the question. The Minister does not. suggest any means or policy by which production will not only he augmented hut maintained. Lt other words, more producers are necessary, and as is mentioned in the reference following, a live land policy is necessary for the general well-being of the country. Mr Stewart, in his review appears satisfied with a study of the past year's finances. As far as the figures go they are .satisfactory, but the general condition of the country leaves mm li to be desired from the administration in the matter of future policy. The Minister of Finance was content to make out ns! good a ease as lie could governing the appeal about to he made to the London money market for the urn loan. He has succeeded in that respect apparently, and he will lie able to again draw a measure of satisfaction from the standing of Non Zealand finance in the world’s money market. The real prosperity nf tho Dominion will lie measured in the main by (lie contentment of its people. That is mil till that it should he, and unemployment is far too rife already just on the fringe of winter. It will he mere serious later, and apart from the new loan there is no apparent effort to meet the general situation with a real palliative, which should have the ultimate effect not only of relieving hut also of curing the ill the country is suffering from in that respect.