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Hokitika Guardian, 29 March 1932, Page 4

Axotiieu reminder was given of the state of the national finances in the Dominion in the statement made in the House last week by Mr Downle Stewart, Minister of Finance. It was a. plain unvarnished statement wun<out padding, such as folk have become accustomed to from the source referred to. On account the definite (•statements of Mr Stewart always Into press and must carry a good deal oil weight with those prepared to listen or road. In the main and supplementary budgets of last year, provision wao made for shrinkages in the net funds of about six millions. That seemed an adequate amount, but results have proved it was not. It was two millions short, and another half million extra had to 1 be found owing to extra exchange costs. The effect is that there is approximately n deficit of two. and a half millions when the year’s accounts close next Thursday. There is, however, a little blue on the darkened horizon, for the Minister states reserves of funds from accumulated surpluses, but invested, are there to offset the deficit. At- the moment, these reserves aGe not readily available, being frozen by way of investment, but the Minister has in mind their realisation, when opportunity offers. The statement- iust presented does not probe the future as to what might be done financially. It is a .statement of fact revealing the situation at date, and when the final balance is made up, we will hear again from the Minister as to* the needs of the times. It is evident, however, that despite what has been done there is a 'steady drift going on, and there is the task ahead to grapple with it. The Government has been given a lead, by the Economy Commission, and that advice is not likely to be wasted. Before action is called for there will bo a further report from tho Commislon, and the Minister will know the full measure of the deficit. All the data will be at hand to shape the financial policy for the year. Tho future does not look promising ns regards an early increase in income due to trade and market revivals. That means close estimating of probable

receipts and a drop in expenditure seems inevitable. Some real economies will have to he enforced unpleasant though it be, but we should say Mr Stewart will not shirk his duty in the matter.