WELLINGTON NEWS

Hokitika Guardian, 3 September 1930, Page 2

WELLINGTON NEWS

'NEW (ZEALAND PUBLIC • , .FINANCE. (Slptcial Correspondent.) '■ ” -■ ?? V WELLINGTON, At the annual meeting of shaiellolders of the National Bank .of ' Nesv Zealand held invLondon?on July 15, the chairman (Honi'W. Pember Reeves), in referring to Ne Zealand public finance, said the outlook was not' good. Last year the Government was faced with a deficit of over half a million, and :in order to find revenue they increased the land tax and the incofne tax on .the larger properties and imposed a primage duty on imports generally. By these means they obtained an increase of £1,750,000 in the revehue. . Unfortunately they did not keep expenditure down; it increased,by more than a.million, and the result was that the surplus on the general revenue, instead of being large, was slightly less thijn £150,000. But the acoount of the State railways, which is ’ kept separately from that of the general revenue, shows,, according to report figures which are still worse than those of last year.. -A. Royal Commission has been appointed to examine into th? . cause of railway losses, and a. drastic curtailing of their services has already been announced! ; :

The Government has propiised to move or reduce some of the new Cu»* torn* duties, and at the end of the fin uncialyear were taking steps to do sjo. The reduction‘ of! taxation ’ howeyer, will hot"'go very far ; "quite the ’other way., . ‘ The new Prime Minister Rsfi’ George Forbes) has issued a statement of the finances in which he indicates that he expects a deficiency of £5,000, 000 in the amount required to bajancp expenditure and public . income jat thp end ctf the current year; He promises drastic retrenchment which, ■ indeed will be needful and indicates that there will have to be yet further taxed. Mr Reeves declared that the, conversion operations in London nmt'wjtfi complete success, one result being the transfer of over £6,000,000 of tlie public debt from London to New Zealand. '“All the same, the new. .trinie'Mipipter of New Zealund will be well advised to put as little strain pnithe friendliness of the London market to’ New Zealand stocks as the financial position of his Treasury will admit. New Zealand newspapers and public men are wont to dwell with legitimate pride ’ on the high standing of the Domihidn’s credit in London. If this is to: be preserved there can be no., doing so than for the .New Zealand Government to make some approach to the dim and distant idfeal of Hvjngtqpon its ordinary revenue. Vl . For years past-tile ideal has rather receded than come nearer, except \n : . during what I may terifi the dbatli-hed repentance of the Reforiil ’l , arty; , ’",'li is to be hoped that bur Goygrupipfit will take to heart this warning hyV, a friendly critic. There was a time 'vhe» Australasian credit was goqd i?) Lbfidon, but the Australian States and the Commonwealth abused their position by excessive borrowing, end Australians have to find' whatever lfipn ey they may require within their oivn borders'. We have been borrowing somewhate freely during the past six or seven years and must take a pull, or else we will fall into the same ugly position as the Commonwealth.

THE TRADE RETURNS. The most interesting feature about the trade returns for July is that imports for the month declined by £l,444,039, equal to very nearly. 33 per cent, as compared with the corresponding month of last year. It was expected that imports would 'fall owing to the high exchange and the high duties, at the same time it must be remembered that with less merchandise there will be less trade for the retailers. For the twelve months to the end of July the exports were valued at £48,255,120 as compared with £55,608,644 in the preceding twelve months a decrease of £7,855,544, still the ex-, ports exceeded the imports for the ' twelve, month by the small sum of £869,982, but if the wool carried over is added the total would be nearer £3,000,000, which is . not unsatisfactory provided the export figures are reasonabyl correct or not einflated.