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Hokitika Guardian, 20 June 1930, Page 4

'lhk Prime Minister is displaying a good grip of the national finances, and is meeting various kinds of criticism jviti) an explanation which betokens a clear understanding of the position. For that reason greater confidence may well be manifested in Mr Forbes’ first statement on the financial position when he entered upon office. It was described by one Reform journal as “an admirable piece of plain speaking,” one which “dodges or softens none of the hard truths which it was the duty of the Prime Minister to declare.” What Mr Forbes has, .sad since and tJio manner in which he is sticking closely to his desk, at Wellington, indicate he is busy preparing to meet Parliament and to further expound his policy m such a way as to capture the necessary support to assist in the adoption of the,, methods lie will propose. It is true that consider nbe any curtailmemt of policy which the Prime Minster has hinted at, will come from the Labour party, r,he leader of which has already expressed his olmpliatic disagreement with the Prime Minister’s reading of the situation. Mr Holland’s argument amounts to this, that there is plenty of money in the country, and therefore there is no need for drastic economy. I nfor'rinacoly, as a contemporary remarks, Labour i„s never the best of guides' in such matters, for the reason that its attitude is vitiated by a. fundamental error. Labour is wont to regard wealth as an inexhaustible reservoir that can lie tapped indefinitely for public purposes. Labour does not realise that you cannot separate rich .moderately well-to-do, and poor in water-tight compartments, and tax them differently. The State must make its taxation demands fit in with the other needs of the community. Mr Forbes has put tne case for economy unanswerably, and lie lias suggested ways in which savings can be made.

He must have been well aware in doing so that be would incur Labour’s hostility. It will be very interesting to see how the political situation develops when Parliament meets, for Labour is regarded in some quarters as the sheet anchor to hold the United party in power till tlie- next general election conies round in the ordinary course. But the House as a whole will be very sensible at this juncture about toe political situation. The general financial position is so serious that not one of the u..ree parties in the House would be desirous of causing an early general election. There is not any royal road open.ng up for escape from the stringency under which the Dominion labours, and for that reason it would not fc' wise to precipitate a political crisis unless some one or other of the parties is able to produce and provide an early solution of the national troubles. And the fact that Mr Eorbe-s is shewing a decided tendency to grapple intelligently with the situation is a very special reason why the people would desire them to have a I ail run in the attempt- to retrieve the U.isition. His st;Lenient-s regardi&i.g the finances show lie is conversant with the general situation, and he has remedies in mind to tide over, if not to meet, the pressing difficulties. For that reason the people will be. ready to give Air Forbes a fair" trial atnd judge him and the Government by the results.