The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 3, 1929. BUDGET DISCLOSURES.

Hokitika Guardian, 3 August 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 3, 1929. BUDGET DISCLOSURES.

The Minister of Finance is to be congratulated on bringing down the Financial Statement with such promptitude. It has been the usual course to allow the session to drag on before revealing the financial position. However, Sir Joseph Ward has broken from the old order and has presented a statement which supplies some disclosures. The former announcement of a deficit is confirmed, and there is the announcement also that the public debt has been increased substantially. This does not make pleasant reading, in view of the surrounding circumstances affecting the country’s pressing obligations. There is still a great deal ol national work to do, but unless finance is easy, great difficulties present themselves. One effect is that more revenue has to be found, if the scale

of expenditure is to go on, and in view of the very general unemployment, there is a difficulty in slackening expenditure in case more people will be thrown out of work. Public works expenditure it is apparent must be maintained as far as possible, while money must be found also for advances to settlers and workers for development. Economy in administrative work might be possible, but could not be very effective, though it is understood a saving in that direction is Wing-' effected. With the continual borrowing, annual charges are increasing, even though money for advances is interest earning. But money is being lost on the railways, while of course heavy expenditure on public works such as roads and bridges, is not directly revenue producing. In the circumstances, more money has to 'be provided by way of taxation, and that means increasing the burden in various directions. This adds to the general difficulty oi the country, hampering progress in many directions. The loss on the railways is now very substantial for there is keen competition with road traffic which is increasing rather than otherwise, consequent upon the improved roads. On the one hand people are asking for better roads and entering directly into competition with tne railways, which in turn are expected to pay 1 Here is a problem difficult to solve, in fact impossible to do so with the circumstances as they are, and the position has to be accepted. It, is hoped by the completing of the trunk railways there will be some improvement, due to more produce trade, Avhich would indicate a degree of land development along the route. But in regard to small or branch lines, motor traffic is cutting in badly and financial deficits are inevitable Here is another serious problem for consideration. A loan of some nve million for land settlement is proposed as a means to assist unemployment, placing more people on the land in permanent work. This cannot be done readily. Such a scheme will take a long time to become effective, ana the of the progress hampers the situation meantime. Large estates are to be acquired and cut up, winch recalls the success of the old Liberal regime ,a policy which did so much for more stable conditions iff New Zealand. Immediate relief of unemployment does not appear possible by any policy stroke, which means that the country must continue to temporise with the difficulty, easing it to the best advantage as circumstances permit. The outlook in tnat direction calls for care in other directions, for some money must be hoarded .to relieve the pressing conditions in the centres. Sir Joseph’s general review of the country’s financial. position covers a large number of matters, and as might be expected he is clear and definite in his statement. It appears well that he is at the helm at this juncture, and the public satisfaction in regard to his leadership can be well understood. Although he may be leading a party which .is not in a majority, it is not likely any opponent would be bold enough to seek to displace him. The finances have to be set in. order, and Sir Joseph is the most capable leader for that task. On that account the public will repose confidence in his work and proposals, and await the outcome with a good deal of hopefulness. In the past he has proved himself worthy that, confidence, and the only regret up' and down New Zealand now will be that he was neglected for so long, and the country so slow to ay his outstanding ability the justice it has -merited, as his fine’record in Dominion service shows.