Manawatu Herald TUESDAY MARCH 25, FINANCIAL FORECAST.

Manawatu Herald, Volume XLI, Issue 1956, 25 March 1919, Page 2

Manawatu Herald TUESDAY MARCH 25, FINANCIAL FORECAST.

THE Mercantile (ta/.elle, l.’o recast - ing (be result of the linaneial year ending .March ulsl, anticipates a surplus of a bout t“i,750,0(1(1, Added to tin l war surpluses realised during the three previous years, (his should give (he Minister of Piuance over ,015,00(1,0(10. Commenting on this, the Hazel to says: The Pinance Minister should at the (dose of the present linaneial year have a very substantial nest-egg to meet the extraordinary expenditure that maybe found necessary during the next and succeeding linaneial year, which ma.v prove to- he tire worst periods of the transition from war conditions to "peace conditions. In public finance it is a fundamental error to extract from the pockets of Hie people more than is actually necessary to meet the charges, and Iherefore a surplus of any dimensions shows faulty estimating. During Hie war the Minister deliberately set out to build up a reserve out of revenue, and lie has succeeded very well. The people have paid in taxation more than was needed by the Government to properly administer the affairs of (be State, but the people acquiesced in this extortion, believing it was the right course to pursue in abnormal limes. But care must be taken that this policy is not continued when normal conditions again prevail, otherwise the temptation to squander money- in political adventures will be more than the average politician could resist.