The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, DECEMBER 30, 1931. THE CABINET AND DIFFICULTIES

Hokitika Guardian, 30 December 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, DECEMBER 30, 1931. THE CABINET AND DIFFICULTIES

It iii generally,-.-agreed that the ■ Government is about to face a very serious and difficult time in the efi'oit to keep the budget balanced, in other words to maintain the national credit beyond reproach. It is an open secret that estimates of revenue are not being realised, and despite the economies eiitoi'ced already,’ tlieie is a financial drift, and tins has to be stemmed. There has been the announcement of a special economy committee, which it is expected will be constituted outside Parliament, in the nature of expert advisers. The quarterly period ending this month will have its effect on the general situation, and, when the accounts for the nine months are made up it -will be clearer what is the actual drift. • In the ordinary circumstances, the following quarter, due to the payments of income tax should show a credit balance, but- even that is in doubt owing to the ability or otherwise of those responsible being able to pay the tax on the due date. It is a problem in view of the drift going on just what should be done. Taxation, it is agreed, is practically at the limit, and before resorting to an extra impost in that direction, there will require to be made a general overhaul of tlie public,.expenditure. This will form one of the principal tasks of the Advisory Committee to be set up, to guage how far it will he possible to apply the economy axe. The Government ha s not shirked its duty in that respect already, and during the election period was called to account by its opponents for daring to retrench. Even to-day,, there is an immediate, outcry at the application of any saving in the public expenditure, for folk are slow to realise how difficult is the problem in hand. Economies which have been practised must he considered only a part of a whole yet to he completed. That they were necessary and urgent is manifested by the fact that circumstances already prove them to he inadequate, and more of the public expenditure must he curtailed. There will be more opposition, no doubt, but circumstances here, as also abroad, point to the necessity for further savings being enforced. The European position, is so distraught that the world is not going to make an early recovery. And it is to the European sphere' where wc must" look for > the sale of the bulk of our exports, the returns from which govern the internal prosperity. The drift now going on in world affairs makes it more difficult than ever for the ruling Government here to estimate the situation accurately. Our can' bring only what the people overseas can pay, and it would appear some of the greater nations in the northern hemisphere are heading for national bankruptcy. The hope of betterment from that quarter at the moment, is remote, and more must be done within the Dominion to meet the resultant stringency. Because of the uncertainty of the outcome of world finance in regard to war debt payments and reparations, a condition is imposed on New Zealand beyond control from politcial Government within, and the situation can be worked out only patiently and piece-meal, as the problems develop internally.