The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, FEBRUARY 22, 1933. THE COUNTRY’S FINANCE.

Hokitika Guardian, 22 February 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, FEBRUARY 22, 1933. THE COUNTRY’S FINANCE.

The public accounts for the nine months ended December last have been published, and the Minister of Finance commented rather favourably on the national position disclosed. This is so far so good, for it indicates that the budget position has improved 011 the Government estimates to th© extent of £3va;,oo0 i while for about two months of the final quarter, the Government accounts will receive the first of the benefit from the customs duty and Bales Tax. The decline of the expected deficiency will be most acceptable, for of late the financial outlook has been painted in rather dark colours. The new taxation now going on in relation to extra customs unties and sales tax are being provided to cope with the prospective deficit of next financial year. Wisely the Government is not letting the drift get out of hand, and tee new taxation is to strengthen a position created by the sustained depression period. There is no evidence of any lift in the price levels of •primary produce. At the moment the outlook is rather the other way. Dairy produce for instance has been increasing in quantity and at present tnere is a large stock of unsold butter stored in London. The price level is falling, and the latest suggestion is to regulate export. Such a contingency would have far-reaching effect if put into practice, and would assist to further accentuate the position of the farming community. The depreciated value and the lessened export would ■ reflect themselves throughout the country, and the Government revenue would suffer. This possible situation would affect the national income for next year and make the position even worse than the budget proposals which called for the extra taxation. Were it not, for this adverse development arising at- a period of such stringency, mere comfort could be drawn from the l Minister’s lecent laudatory remarks regarding the finances at this closing period of the year. The Minister further takes credit for the expenditure being kept within the estimates, which is so far satisfactory, bid on all sides , there is a feeling that the pruning knife could be used with further good effect on the public service to provide more real savings. The debt expenditure is a heavy toll, running into several millions annually. Short of repudiating former bargains, it is difficult to make savings in interest, consequently savings must be made l in quarters where they can he done with honour. However, the general position at the moment is rather more promising than appeared possible but recently. The Government is hopeful of revenue being well maintained to the end of the financial year in respect to interest and other payments, 1 and any deficiency in that regard will he reimbursed from surplus customs revenue. The position is nos drifting now as it was but lately, and it would appear greater confidence is growing. Bv that means the general situation can be greatly improved. Growing confidence is doing much for Australia, and the same good result would follow a greater degree of confidence in this Dominion.