The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, OCTOBER 23, 1929. FINANCIAL.

Hokitika Guardian, 23 October 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, OCTOBER 23, 1929. FINANCIAL.

The statement issued by Sir Joseph Ward on Monday in respect to the national finances is interesting and arresting, specially because of the source from which it emanates. The public will lie ready, to pay a good deal of attent.on to the views of Sir Joseph on finance, because there will be confidence in his ability and training to handle the business well.. It seems to be very fortunate that at this juncture Sir Joseph has returned to handle the national finance. His. record pf the past as Minister of Finance is one which encourages confidence, and his policy, we believe, will give security

and satisfaction.. .The ;, .-rfecent statement has been'. issued- i,with the idea of justifying hi§,.Budget, and the proposed taxation;.tq -pover the deficit left by. Reform. Some of the; critics have said the Budget. Will-.create a surplus 6f a million, this no doubt being with the object of. discrediting the, proposals in the eyesob-those whom it is pro* posed to tax to an extra amount. Probably that .is part, of the game of polijiftics,' but Sir. has met the criticisriis with a very and analysis of thg,.,, probable revenue, which indicates .that; the., extra taxation is not to be levied in a haphazard ■vay, but for fundamental reasons. It s admitted that the intention is solely I o balance the (l Budget, aria . account for last year’s deficit. On this aspect the Minister o,f Finance makes his point very clearly. ~As to the finances generally, it will be ,agreed that a jSound finance i$ ,gopd for the. country' ~at all .times. New Zeaand . enjoyed a high rppute ini that respect in times Dast. Sir -Joseph was in charge of the finances formerly, and the country will be glad to enjoy a similar experience just now. Financial affairs all over fixe world are rather uncertain at present, and it would be well for this Dominion to be. :n as strong a position as possible at sucli a jun-ture. The latest .banking returns for New Zealand, were satisfactory as far as they went,, .but wifh the money available in the country business and trade were not.,a,s prosperous as might, be The country has to foot a cons.derable bill just now for unemployment, which must be taken into account in viewing; the general 'situation..' The money ; for that purpose must be .found largely . locally.-,; The expenditure will - be. something of' a burden on the country, as a whole unless the work . performed is of a permanent character; ; If --purely relief work were done, the burden would be, beyond the resources of the country. National works for present and future use require to be performed, and these are the basis of the general scheme for providing work for the unemployed. Another aspect 1 of the financial .situation is. the. growth of imports. They, are mounting up again, indicating a drain on the sources of wealth , within the Dominion. At the same time money is dearer, and will be. less .in use locally, arid that must hamper general progress. Then the.; value of the primary products has a bearing on the national position. While dairy produce is commanding fair prices, there is the fear of a drop on wool. As roughly over half-a-mil-lion bales of wool are exported, it will be seen a- fall of f 2 per bale would mean the loss of a million to the couritrv, and such a sum would have its effect on the general finance of the country. These are facts which suggest that the national finance should be handed with srecial care, and the particular desire of avoiding irore deficits. In other countries within the Empire there is news of late of suggestions of weak finance and difficult times ahead. New Zealand can and .should avoid reaching similar difficulties. On that account, the public, and no doubt Parliament, acting for the people, will be more disposed to give careful attention to the proposals of the Minister of Finance, and assist Sir Joseph Ward to secure a sound finance by levying the revenue required to balance the Budget and

maintain the general credit of the Dominion to the future favour of the country with outsiders. 1