The Guardian And Evening Star, with which is incorporated the West Coast Times. Tuesday, December 2, 1930. THE FINANCIAL OUTLOOK.

Hokitika Guardian, 2 December 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. Tuesday, December 2, 1930. THE FINANCIAL OUTLOOK.

IHK Government took a wise cout&o last week in holding a special meeting of Ministers of tlie Crown and permanent heads of the Departments for the purpose of discussing .administrative efficiency and economy, it is obvious lrom tiie sale prices of New Zealand primary products, that there is going to be a substantial drop on tr the current period in the Dominion purchasing power. Last year the drop due to the fall in sale values was estimated at seven millions, and the effect of that has been demonstrated very amply. This year the drop is expected to be a further ten millions, so that the stringency will be more acute still. The fact that the exports will not touch satisfactory values, makes it plain that the estimated receipts of the country cannot reach the Budget figures. The Government was wise, then, in facing the probable situation now, four months before the end of tlie financial year, instead of waiting for the end of March to attempt to place things in order. The action shows that the United Government is capable of handling tlie financial situation wisely, and the nosition grappled with betimes, should result in the difficult situation being met fairly well, and certainly with less shook and inconvenience than if the whole position were allowed to drift. From the statement made by the deputy Acting-Prime Minister, Sir Apirana Ngata, there is to be a substantial drop in customs’ revenue, and a further serious shortage in the railway returns. This contracting revenue points to substantially less imports which for tlie time being at least, may bo considered something of a blessing in disguise, avid the loss on the railways means less business in that quarter, which is accounted for in tire drop of exports due in the main to the lack of attractive markets. The position as summed up by t.h.o Minister, is due to contracting revenue, and not to expanding expenditure. As a fact the Minister was aide to announce a substantial reduction in expenditure for seven months of tlie year, and it is a satisfactory interim record. The position ns wealed should enable a fresli stock to he taken of the country’s assets and liabilities, and with the heads of the Departments at the table with Ministers further economics should be possible, to assist in meeting tlie position. The year as was indicated in the Budget statement, is a difficult one, and there is not much sign of those difficulties disappearing very'readily. Mr Forbes, it will he recalled, was vorv out-viokni when he took office, and his Government is following the same safe course. The times ahead arc not any less difficult, probably more so at the moment with the further drop in leading commodities, buit t,lie Government i« fully alive to the economic difficulties, and

is making a special effort as was indicated by Sir Apirana Ngata “to keep the public finances on an even keel.’’ Jt will be a very gratifying •achievement if the Government can close (lie financial year with a balanced budget. Certainly the effort is in that direction, a fact which gives cause lor hopes of success, because the tnlsk is evidently 'being taken in hand without waiting till it is too late to do «o. The Government all along has displayed judgment in its financial operations, bv keeping close track of the periodical returns, and immediately (as in the present instance) taking effective steps to check any drift. With the country’s finances sound at tlihs juncture, the general situation can be met and overcome with greater public confidence, which is tho essential factor in national welfare. The Government has shaped well through an unusual ordeal, but the soundness of the administration accounts for that result, and the same care and attention continued will null the Dominion through satisfactorily.