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Hokitika Guardian, 18 February 1931, Page 4

Somh little time prior to the issue of his economy statement, the Prime Minister in the course of a public address stated: “If me are to carry on without disaster, we shall have to shorten sail, and shorten it very considerably. There is no other way in which we can meet the position.” This declaration may be considered the text on which the* economy statement was based ultimately. The declaration, in point of fart, is the kernel of the national position, and it is futile to ignore the fact. With the fall in produce prices and the drop in the earning power for the country’s exports, a reduction of cost of production becomes paramount. It was for the Government to give the load and it has done so boldly. The honour and credit of the country is in the keeping of the Government in power, and those two essentials for national well being must he preserved and not abused. We se ( > in the daily press evidence of what is resulting in Australia from the failure of the parties in power to balance the national budget. Their slogan has been to maintain wages and even to shorten hours—Dm the result has been to court disaster. Less people are being employed, and of those in work, the State has a difficulty in paying wages regularly! The chaotic condition of the finance of the Commonwealth and the States should bp a warning to any country of the disaster which can lie courted by allowing principles of national financial security to he ignored. Mr Forbes’ proposals are Irdng condemned bv the La hour party. The same party in Australia in the endeavour to right matters there seems to he going from had to worse by the uneconomic methods adopted. In England, the Labour party through Cm Chancellor (Air Snow, deni is recognising that its methods has rot saved the country from fianoiai diffirultv, and he. too. savs in effect, that G’-oat Britain must “.shorten sail.” and impose all round economies. including a reduction in wages. Now Zealand is very fortunate at such a crisis, that it has in power a Government- strong enough in principle *-p reeoom's? its plain duty and ntt«mnt to do it. Mr Forbes has placed all the cards on the table and makes a. wide anneal to the citizens to cooperate with the State in effecting all round economies. His appeal will not he in vain, for it must he recognised that the lead given will he of decisive influence to those who study the sit-

nation. Doubtless, we are all agreed that the situation is had and the outlook unpromising, unless we .shorten sail for the inevitable financial storm, and of that view it is lor the people as a w.; he to puis e the sensible course and assist to avoid di-aster. The healthier the financial condition of the Dominion, the bettor will he its trade and business, and any modest sacrifice made now in good time, will save greater dislocation in the future and seek so much earlier to re-estab-lish bitter and more stable conditions.