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Hokitika Guardian, 23 December 1930, Page 4

There requires to be reason in the demands for public economy in the expenditure even in this time of general stringency. The position is rather well put by an English publication which dealing with the same subject at Home, goes on to say: Urgent as measures towards national economy may be, there is grave danger in the very popularity of demands ior their introduction. There are many among us so obsessed with the idea of economy that they imagine restriction of expenditure to be the ultimate and only cure for all the evils that beset us. They are as unwise as the young man who, desiring to rise in the world, confines His activity to mere saving, in the 'belief that only the possession of capital is essential to success. But economy, however desirable, is in itself a negative factor. The ambitious young man must add to thrift positive action towards making himself more useful to the world, thereby raising bis price in the markets of ability. Efficiency must be added to economy if prosperity is to be achieved. “It is obvious,” said Mr R. J. Hose, Chairman of the Anglo-South American Bank, ‘‘that no Government can control fundamental economic conditions. Act when the*e arc unfavourable, public attention is inevitably focussed upon the decreasing necessity for economy and efficiency in the national administration. It is difficult to dogmatise with certainty on this subject for the reason that circumstances alter cases so materially in tho public interests. But of course, retrenchment is one thing and economy is another. Tn the former a complete stoppage is implied and in the latter a regulation of the situation. From the national point of view at such a juncture, the State must be circumspect in its administration. Waste should be avoided and overlapping stopped. In the departmental administration there is said W

lx? over-staffing which suggests a- degreo of waste, while so many departments are but branches of the main department, that there must be a considerable degree of overlapping. This suggests that the public service is duo tor an overhaul. Individual Ministers have made some contributions to this necessity, but the Civil Service as a whole lias escaped. It is in the many departments where .the overhead costs increase. Just now there is a lessening of public business. Revenue indicates bow business lias decreased, and there must bo waste going on through overlapping. In that particular there will be room for an overhaul. It is clear therefore that in any economy which is sought after, efficiency must he maintained. With that in mind there need not he wholesale retrenchment, but a careful adjustment of staffs to the needs of the country, so that for the expenditure involved in departmental administration there is a fair and adequate return without adding unduly to overhead costs and so causing what is practically a waste.