The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, AUGUST 16, 1933 THE PUBLIC ACCOUNTS.

Hokitika Guardian, 16 August 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, AUGUST 16, 1933 THE PUBLIC ACCOUNTS.

The statement by the Minister of Finance in respect to the public accounts for the dune quarter, is a reassuring one, Mr Coates expressing satisfaction with the general position and the prospects ahead. This is a pleasing outcome, and here gratification might be expressed with the Minister’s handling of the public accounts, Mr Coates followed' Mr Downie Stewart, when the latter decided he could not agree with the Ministerial financial policy. There were misgivings expressed when Mr Coates took the post, but he has made good, and the results are • justifying the position as set out in his present statement. His exposition of the general situation is very timely. There is >a loosening of cash generally and many works are being undertaken.. Confidence will increase with the knowledge that the State finance is sound, for the lanriouncement of a surplus at the present stage and after the heavy exchange demand on the Government, is reassuring. Revenue has kept up well to estimates and the new avenues, sales tax and export gold duty, are giving substantial returns, and have helped materially to bring about the general situation of improvement. Mr Coates is satisfied as to’ the stability of. the revenue, and that there can be no further serious falling off, indicating that the worst of the troubles has passed. The Minister has explained the expenditure with' some detail, though he does not indicate any possible savings in the future, excepting under the exchange indemnity on which subject he dilates at length. The exchange is a very vexed question, ■as also the indemnity the granting of which was complementary to the former. Mr Coates’ deferiee, ns such it is to a certain degree, "takes special interest because of the Parliamentary session opening next month. There is. sure to be a thirst for information on the subject, and it is perhaps as well that a review should now be published to allay the general concern on the matter even outside Parliament, as to where the national liability was heading on the obligation. Mr Coates writes confidently on the position, and makes the naive remark that if London credits increase on the hands of the Government, “there will he no. difficulty in disposing of them, as the Reserve Bank when established will require London assets.” This indicates that a much canvassed measure is to be put- before Parlament and passed if the Ministry so will it. Its appearance in the House will provoke a wide discussion, but probably the Government’s final decision in the matter will rest upon the advice Mr Forbes will bring back from London. If the gold standard is likely to go completely, or some other monetary basis adopted by the Empire, the position of the Reserve Rank question will be greatly affected. From the trend of financial comment at Home, it is not improbable, that Britain will adopt a changed monetary svstem wberebv a new parity will he devised. Be that as it may, Parliament will be disposed to deal with the financial issue on the present basis, and an interesting debat, 9, may be looked for. Generally, however, Mr Coates has paved the way for a not too destructive criticism of the Government policy which has kept the .country on an even keel financially mid given hope for a final emergence from the late pressure.