THE DOMINION'S FINANCES.

King Country Chronicle, Volume VI, Issue 470, 1 June 1912, Page 5

THE DOMINION'S FINANCES.

VERY BUOYANT. [BY TKLMJRATII. —PBKS.S ASMHIATrOX. ] Opunake, Thursday. The Prime Minister, in dealing with the finances of the Dominion, in the course of his speech to-night, pointed out that the financial result of the last year was highly satisfactory, and when compared with that of the previous year was an indication of the soundness and continued prosperity of the Dominion. The revenue, £11.032,544, constituted a record, exceeding that of the previous year by £735,500, and was in excess of expenditure by no less tan £720,800. A surplus of £807,276 was available compared with £586,500 last year.

"As to the expenditure for the year," said the Premier "this amounts jto £10,340,000. Of this amount, the Post and Telegraph Department was responsible for £986,500, Railways £2,451,700, Education £1,0.12,000, Defence £401,870." The transactions relating to the Public Work Fund amounted last year to £2,350,500. This included receipts of loan money of £700,000, and transfer from Consolidated Fund of £500,000. The expenditure on public works during the year amounted to £2,265,000, and other charges £67,000, leaving a cash balance of £82,580 at the end of the year. At the gams time it must be remembred that the loan money, amounting to £1.050,000, was not raised, so that available public works money to start the current year with is £1,132,000. This, with the amount transferable, from the Consolidated Fund, will give the Government a sum of from £1.750,000 to £2,000,000 for public works for the current year. It was not considered advisable to raise the loan money authorised until it was actually required. Ways and means were provided for until October, but it might be necessary to take an early opportunity to go upon the money market, if favourable, to secure the necessary funds to carry on until the end of the financial year.

During the Liberal regime the total amount transferred to Public Works Fund from revenue amounted to no Jess than £8,530,000, which has been expended during a period of 20 years in addition to loan money. When it is remembered what has been given away in the past in remissions, —for customs alone exceeding £6,000,000 —it must be very gratifying to all interested in their country to know that notwithstanding the demands made by payment ot widows' peniaons, increased cost of defence, and old-age pensions, our revenue is higher than it has ever been. The banks had struck a note of caution, and in this he thought they were right. But it was gratifying that the present stringency of the money market was due to causes wholly unconnected with New Zealand. All the Dominion figures indicate internal prosperity.

Much had been said about our ex- J travagant borrowing in the past, J went on the Premier, but it had to be j remembered that in a developing com- I munity it was essential that borrow- | ing take place, and, after all, the | success or otherwise of borrowing a I contingent on the manner in which i the money was used. It was, of j course, for the public to say whether | borrowing ahou'd take place, but if j he tcountry was to develop we must \ borrow considerable sums because it j was impossible to consider the raising : o£ moneys necessary for development < by means of taxation aione. It was, however, doubtful if our loans could be obtained during the next few years on anything like as favourable terms j as they have been for the past ten J years, and it therefore behoved us to ] be cautious in our borrowing policy. j