The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, APRIL 18, 1931. DRASTIC ECONOMY.

Hokitika Guardian, 18 April 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, APRIL 18, 1931. DRASTIC ECONOMY.

I'nt: statement by the Prime Mimsem to I’i.rlian cm on Thursday regarding ine finances ol the Dominion, revealed a condition ol aita.rs calling lor drastic , I’-’uroiny. it appears that the veununiies attempted recently are not at all adequate to meet the deficit (which is a growing quantity) and render it possible to balance the Budge t, Since Mr !• orl«?.s’ .statement of two months ago. i ‘‘iqft has gone on, am! tin- expected tJt:f it-i t has increased by a million, anu now totals live millions and a half. This is a large sum to account for, and the Government now proposes both drastic economy and retrenchment lii the public service, There is, of course, every reason to believe that the revenue has Ivon falling substantially. The general conction of affairs in the conn, try confirm that possibility in a rather unpleasant way. Pi j vale business undertakings are feeling the abnormal conditions, and many old established concerns are winding up and going out ol business. ’I he growth of unemployment is another index of the general situation. The remarkable increase in the number of women unemployed. indicates that business houses and even industrial concerns, are reducing their slab's very drasticnil.' owing to the decline in trade. lie 1 banking returns referred to below, likewise, reflect Lbo general financial situation. With the economic situations as they are, the public finance is suffering in a rather accentuating manner, and first as the private employer has to overhaul staff commitments and administrative exnenses, so those responsible for the financial wellbeing ,jf the country must lie equally attentive. It is a very unpleasant task which has fallen to the lot of the present Government, but .Mr Forbes and his colleagues are doing their duty courageously and not shirking responsibilities. Air Forbes is able to give tlie country ample reason for the drastic steps now being taken, anil it might he thought that those with a genuine desire to assist the countrv in weal or woe might snand by the Government and encourage : the Ministry to do its unpleasant business in the best: advantage. But we find Labour and its political following doing overvthing possible to hamper a safe and sane adjustment of the financial obligations which the Dominion must face. Labour is prepared to thrownational interests to the wind, so long as wages are kept up. irrespective of where the wages ere to come from, or what other national interests arc jeopardised. This attitude is a reflection of the attitude of Labour in Australia where there is the readiness to drag Ihe nnblic credit of the country im the dust, and is a warning not to trust Labour with political control if it is desired tu> maintain the good name of the Dominion. The policy of retrenchment proposed by ?dr Forbes is in a measure overdue. New Zealand lias been over-governed with departments and staffs. In flourishing times there was the desire to create the public service- a greater factor in the publiclife, and that lias gone on till the service has become topi heavy, and the crash has come. [t. is. of course, a most unfortunate juncture for such a crisis, but no doubt it is only stern necessities which have brought it about. The clean up was in a great measurelong overdue-. The burden of overgovernment lias long been more than the country could be asked fairly to carry. The drastic measures now beiim taken will bring to the minds of all a- realisation of the state of affairs, and the fact that the circumstances of the finances arc very serious. Retrenchment is not the whole story. There is to be more taxation, for more revenue must he found, and it will take some time indeed to clear up the substantial drift which has taken place in the national finances.