The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, FEBRUARY 22, 1932. EXTRAVAGANCE IN GOVERNMENT.

Hokitika Guardian, 22 February 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, FEBRUARY 22, 1932. EXTRAVAGANCE IN GOVERNMENT.

Oxe of the realities to-day is the obvious extravagance of late Governments in the matter of public expenditure. This was due to the facility with which money could oe borrowed, nominally at a low rate, but still at a rate which involved interest payments, and a liability To repay tbe capital itself, mostly at a remote date. " During the financial orgy of spending in war time arid afterwards, the nations a pent proUficajly, blit a Jinlt lias been called now. The result is the extravagance* have been stopped, and not betoro time when the situation is viewed in the light of its national liability. Very few countries have escaped the practices which have brought the cure times of to-day, some are worse than others. New Zealand is bad enough, but because it is not the worst offender there is not any occasion to crow about the position. When we speculate on the loss on railways which have been 'Stopped we realise something of the enormity of the extravagance. Those works represent millions of dead money—once borrowed, still a debt, and still to be paid for in current interest and provision for the capital repayment. We have spent as freely on hydro-elect fie works, and it is being realised the extravagance in that respect is going to require many years to pay off the loans—if ever in reasonable time. Palatial buildings have been put up, representing hundreds of thousands of borrowed money which is all a burden to-day and will lie for many years to come.. The people realise more than ever nowadays that there have been extravagances, and this generation and the next must go on paying for tiie folly and easy spending. In the light of events it is as well the depression came when it did, or this loan debt would have been formidable still. So much of the money lias gone into work's and buildings which can never lie adequately revenue-producing, and the provision of flic payment falls as a penalty on the taxpayer. New South Wales has been looking into its loan debt, too. The Sydney bridge, the underground railway, the electric trams, city street construction and a suburban railway, all built witlpn recent times, have cost over fifty millions or twenty pounds per head of the population of the State. And so on throughout the Commonwealth there lias been extra vaga nee in expenditure. There is Canberra to be mentioned, and other rosily schemes of irrigation ail'd railway const mi l ion. Probably all is mu loss. particularly with the irrigation works, but the whole is a IK iik minus national burden and bears unduly heavy in this time nt crisis. Borrowing to tide over in imrusse is an easv way 01 evens miilg the difficulty. but i| i~. not passible In borrow mi I'onsoniible terms It" either ' nsIralia or New Zealand now. The benefit of 'Fit state oi affairs '.'.ill be api nviaied by the I >xi>: yer as setting v in "thing of a limit in bis

ukl iua t ions, 'ml il is mil ii vm'y ooi'ifot'l iii'j: (In ih| wln'M In' si* 'ciiliili'S I; 11 M'lll'lV l'i' lIIHI'I'V lllll'llls I 1 II TO'Vlii I lllls UiHU* ’’llil i" : I ■ T 1 1 I‘ D 'l'M'llt l" 1 ‘ ■ |ik, lik lialiutv mil l yn mi in 1 1 1■ lilli l 1■ Iy Tlii'f inav In' sniim <'o|r siilalimi in ll'f* 1 1 inijilll llial Ini' 111' 1 pri'Simt il-'i aili; at. ImiMl jiolita ians

and people alike have leaned their lesson.