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Hokitika Guardian, 31 January 1931, Page 4

The financial troubles of Flic. Austral- ' ian States are .sufficiently acute to arrest the attention of New Zealand. The needs of New South Wales in particular, coupled with the .statements made from time to time by Premier Lang ami his Labour associates in th<> Cabinet, are disquieting. While condemning the Loan Council organised to deal with the financial affairs of the Commonwealth and the various States, Mr Lang is still leaning on that source of financial support to provide for his urgent needs, and hints in very plain terms that if what no requires is not forthcoming, he will raid other sources, file has some backing in his challenge to the hanking institutions in Mr Theodore, whom Mr Seullin has requested to again join the Federal Government as Treasurer. This despite the faithful service rendered by Mr Lyons during the absence of tnc Prime Minister in 'England at the Imperial Conference.. Apart from the threat on the banking institutions, members of the State Cabinet, also, threaten the heaviest super-taxation known to supplement revenues. Tt is not clear in which direction this will trend, but incomes have been hinted at, while the tax has been mentioned as fifty per cent ! Which ever course the Government may take, must do the country great harm. The hanking system has proved a financial bulwark, but if it is to be tit the sweetwill of any Government which finds itself in need, then the security goes, and something of a national debacle will result. It is probably realised ere this that the swing to Labour as led l,y Mr Lang was a grievom* mistake for the country, but having made the choice, the result must- be acoepted uiltl the country must take it* political medicine. If the Government elects to levy more taxation in addition to all the other imposts put upon the people, the confidence of the people in Labour administration will be shaken severely. It is not a very good advertisement for Labour rule to find the extreme elements in the party dominating the situation, and exercising their tenets with such free play, and in general adopting, class ! legislation as the one panacea for the j country’s welfare. The plight of A us- I tralia, and the general trend of affairs there are an object lesson which should not he wasted on New Zealand. There has always been an enviable record for some legislation, legislation which lias often been a pattern for other eountrv. The- countrv should appreciate what has been clone and what is being done to safeguard nntinal interests, and bring flip Dominion through a difficult pm-iod arising from the dron in world markets. Sound administration and reasonable economies are necessary to maintain the credit of New Zealand, and those factors are being nractieed with reasonable methods in this country.