A WORLD OF DEFICITS

Hokitika Guardian, 10 June 1931, Page 6

A WORLD OF DEFICITS

(Auckland “Star.”) To ho told when ono is in trouble that others are in worse cases does not ease one’s lot, hut it may be beneficial in correcting ideas and developing a sense of proportion. The New ZealandI er contemplating the deficit in his own i national affairs, may be heartened to know that other countries are in a worse position. We live in a world ot deficits, and New Zealand is by no means at the bottom of the melancholy list. Australia’s total deficit, Federal ‘ and State, is thirty milions, and it is? ! estimated that if things are allowed to 1 drift, it will he fifty in a year’s time. ! The present total works out at between | £4 and £5 per Head, against about one pound odd for New Zealand. South j Africa, with a white population about ! as large as our own, lias a deficit rather larger than ours. A few days ago the United States prospective deficit was announced as £300,000,000, which i s between £2 and £3 per head. Now we I have the Canadian figures, which show . a deficit of £15,000,000, or thirty sliilj lings a head. But the whole tale is i not told by these figures from the American continent. A comparison between Canada and the United States, on the one hand, and Australia, New Zealand and Britain on the other, is not complete without knowledge of the provincial or State finances in these countries. We know how the Australian States stand, hut not what the position is in British Columbia, or Illinois. When financial comparisons are made between countries care should lie Taken to see that they are on the same basis. Wluui we turn to Britain, which to so many appears to he a weary Titan bowed under the too vast orb of her fate, we find accounts balanced. Last year there was a surplus of income over expenditure, and Mr Snowden was justly proud of the fact that in a time of financial depression Britain wa.s not only aide to pay her way, hut to make a substantial reduction in the national debt. In Britain, however, the tradition of balanced Budgets is very strong —stronger perhaps than in any other country. The Englishman has always been willing though lie grumbles enough about it, to tax himself in order to keep out of debt. This recent balanc. ing has only been achieved hv very heavy taxation, which has made it more difficult for British industry to compote with its rivals. But even AllMr Snowden, who had previously warned his party that industry was carrying as much as it. could hear,'felt compelled to increase taxation for the current year. It is the same everywhere. Revenue is falling, hut huge fixed charges have to he met and services maintained, so that in. Australia, Canada, South Africa and New Zealand, as well as tn England, more is demanded of the taxpayer. Only in America is it suggested that the dficit should he met out ot loan. Finance Ministers are everywhere faced with the same problem; how to meet the nation’s hills in a time of falling prices and consequendv fr lling incomes, knowing that the marg n of safety in taxation lias become perilous! v small.