The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 26, 1933. THE BORROWING POLICY.

Hokitika Guardian, 26 June 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JUNE 26, 1933. THE BORROWING POLICY.

The Government has been urged by an active and influential deputation at Auckland to resort again to a borrowing policy as a means to assist in wiping out the depression. Many folk 'are dissatisfied with the decision of the acting-Prime Minister which was decidedly of a negative character. Probably it was thought that with the past record of Mr Coates in regard to borrowing, that he would fall an easy prey. However the Minister has grown much wiser of later years in regard to finance. In his present positon 'as Minister of Finance, Mr Coates is face to face wtih the problems of finance daily. Before Mr Downie Stewart held the portfolio, and so far as could be seen, did not put any break on Mr Coates’ expenditure policy, though the latter has had to bear the brunt of the present day criticism on what was done in those days supposed to be so much brighter. But they were brighter because borrowing was so much easier, and was the readiest means of meeting requirements from time to time even though liabilities were piling up which have now become a serious burden to the country. According to the year book the total debt at 31st. March, 1933, was £281,942,800, a total which indicated how serious a burden has to be borne. When it is recalled that the debt of the country in 1891 when the Liberals went into power was £38,. 830,350, it can be seen how the liability has grown. The greatest increase was during the reign of the* Conservative party, but though Mr Coates must bear his share of the blame for any exces.es during that time, he is entitled to credit now - by declining] to launch a borrowing pc 1 icy, excepting on sane lines. The Auckland proposal is very nebulous and indefinite, and was rejected very properly. But the Government must regard the proposition in the right perspective. • The debt burden is so great fiat, with the depleted income, the country’s finance is seriously affected. Taxation has had to be applied m’actie'dlv to brooking point, and would have to be increased still more,if borrowing were persisted in. unless a change came over the country’s..trade and business conditions for the better. A large

sum is now being raised annually in a compulsory manner bv the wages and sales taxes. These arc extraordinary levies on the people, the reluni of which totals millions. The proceeds of the former levy is used to relieve unemployment, and the latter is applied to the difficult task of endeavouring u> balance the budget. The people in these difficult times would local bodies are being called on to expect to be relieved of taxation. The ease the burden on the ratepayers and in many cases are endeavouring to do so. The same task is ever before the Government. It is not clear that possible economies have gone their full length. More should be possible in that direction and the savings applied to balancing tile budget without increasing taxation. The Government is claiming savings in the direction indicated, and is entitled to credit, but should not rest on its oars. Other avenues for savings should be possible and it is hoped they are being explored. Credit is due, likewise on the major issue affecting borrowing blindly. Financial affairs above anything, should be well and carefully ordered and Mr Coates appears to be taking a, proper grip of the situation..