The Guardian And Evening Star, with which is in corporated the West Coast Times MONDAY, APRIL 11, 1932. CRITICAL FINANCE.

Hokitika Guardian, 11 April 1932, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Times MONDAY, APRIL 11, 1932. CRITICAL FINANCE.

A3' the London Times remarks, the 'Budget statement, now before the House, calls for considerable sacrifice on the part of the people. Also as the Otago Times, remarks, the statement made by Mr Downii? Stewart is arresting and' disturbing, The finances have been drifting bad.y, and despite all that has boon done, it has not been possible to cheek the growing deficit. A long vitew has beep taken in the hope that it will ho possible to balance revenue and expetidjture by the year after next. Meanwhile, stern proposals are proposed, and tUe country has to face the position. The minority in Parliament proposes to resist the efforts to save the country’s credit, by fighting the measure. The country howiever has the assurance of the Prime 1 Minister that evenhanded justice has been done to all classes by the proposals in the Bill now before tli'e House. There is the alarming estimate given that on the present rate of expenditure and income, the year now entered on will show a deficit of over eight millions. Tt is in the endeavour to make that drift good that various economies and “cuts'’ are proposed. The Government has revealed a story of the position which shows the finances "'ere never in a worse condition, due to inarkfit [trices and world conditions. The London Times agrees with the statement by M,r Stewart that prices must recover before the country will be able to definitely improve its position, and the newspaper agrees with Mr Stewart that there is hope from the Ottawa Conference in that respect. But that is sometime off, and the essential needs of the moment are to cut the costs of administration and save expenditure where possible. Unless this is done, there will come a deadlock and the administration will come to end for the want ol funds. | The former relief by borrowing freely is not now possible. Last week’s I effort showed the difficulty, but even what was raised, was a relief to higher taxation and more cuts at this end _:it least for the present. The proposals by the Government follow in the 'main what the Federal Ministry bad to do in the Commonwealth, with the difference that so far the New Zealand scale j s less severe. The Bill before the House deals with savings hut- the country L still in the dark a« p, (.To new taxation. A sum of over I WO millions lias lo be raised by Hi is means according to (lie proposals, but dep’ils are not gi\on yet. excepting in regard to the suggested '-ales tax, also in force in Australia. The situation offers no alternative lo toe ellorl lo secure a liiilniued budget, excepting | but of cloying il'"vn l onoletel v- which would be a national disaster. 'I ho task for tb" Government is an inevitable one but !| bus to be done, and it is w. II that there is the courage and resource p, make the cl’.uri rof,uired. The economies and taxation u ill l». felt on Ml sides, and H"’ro will he much ohnotion. The position ; j s s 0 acute, and the figure- involved

so large, that there must be wholesale application of the screw to nave or to obtain more money. But the people will realise what is the situation, and with the outlook such as it is, and the alternative so disastrous, must feci that there- must be an adequate response to the call of those who are placed in the responsibility of carrying oil the administration.