The Guardian And Evening Star, with which is in corporated the West Coast Times. WEDNESDAY, MAY 20, 1931. PUBLIC WORKS.

Hokitika Guardian, 20 May 1931, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Times. WEDNESDAY, MAY 20, 1931. PUBLIC WORKS.

Tun delay on the part of the Government in authorising expenditure sanctioned by Parliament jn the session of 1930, is evidence of the tightness 01 the public finance. Falling revenue referred to so often must have a good deal to do with the stringency, but doubtless the main cause is the cessation of borrowing. New Zealand lias bee,n borrowing heavily of iato years, the habit being whetted by tlio war time experience when folk began v<> think in millions, New Zealand bus been borrowing heavily to meet repayments of loahs also, and these conversion transactions added greatly to the interest bill. The Government ha* unexhausted authorities still to utilise, hut the loan market is not favouuiole. The Government avoided going on the market for an earthquake loan, which would have been a legitimate purpose, but finding the market not too favourable found the money by using reserve funds in London placed there for exchange purposes. Borrowing at the rate of two or three millions a year for public works, enabled much general labour to lie provided, but with a complete ..shutting' down on this source of supply, it is natural there should be a stringency. Here, then, is an explanation of the growing army of unemployed amongst unskilled labour, and the reason why local bodies are not receiving grants with the regularity of former years. The position is governed therefore by the gen. eral circumstances of the. country, and it is necessary for the public to realiso that there must be a recasting of the expenditure. With less work possible, smaller departmental staffs "ill be required, and there will be less laboured work open for the army of unsldled workmen who have been following up public works construction. Other avenues of employment are essential and tho Government is attempting to place more people on the land, This is a slow process particularly when produce prices are depressed. Because of that fact the depresion affects the producing community considerably, their purchasing power being curtailed, and reducing the consumption fit manufactured goods. Many scheme* are afoot to stimulate trade affecting the industries of New Zealand, but with the prevailing stagnation in pub* lie works, there is a serious break on the spending power of tho.se, who employed at lucrative wages hitherto, were good consumers of New Zealand goods in particular, or of imported goods, which in turn contributed to the public exchequer through customs’ duties. There is thus a very general stringency abroad, and it would be difficult to find a.,n avenue of trade or business which is not affected by the prevailing condition of affairs as outlined. A fall in wages would be of some help as assisting more to he employed with the money available, while at the same time, reducing the cost of production. But to give industry a real fillip some lift in the prices of the country’s exports is most desirable, but- that is not too promising of performance. In a district such as t-his, dependent on the timber industry so* largely, a quiet period appears inevitable. To help the timber trade a larger market than the Dominion is necessary, and that while it was sacriiied in the past by a former Government, is not very hopeful at present because of the state of politics in the neighbouring isles where under normal conditions trading to advantage would be possible. The situation seems to he such, that communities must adjust themselve s to local conditions, and this calls for the right spirit of sacrifice. Employees should be reasonable in encouraging employers to do their best at a. very difficult time, and with, out that co-operative spirit, ready and willing, the situation may grow much worse for the employee.