NEW ZEALAND FINANCES.

Manawatu Herald, Volume XLIV, Issue 2470, 22 August 1922, Page 2

NEW ZEALAND FINANCES.

COUNTRY HAS TURNED THE CORNER, “THE FAVOURITE DOMINION.” While speaking last night the Prime Minister (Mr Massey) said he had recently had the figures for tlit» first four months’ operations of the present financial year. During those months the revenue Avent down by £450,000 less than the corresponding four months of last year. But he had this consolation: that the expenditure Avent down by £1,200,000 in the same period. Those were hard facts, and whatever might be said to the contrary, the effects of the policy of economy could only be felt slowly. The country Avon Id feel the benefit shortly. Long before the end of the year had been reached, the expenditure would he Avell Atdthin the income, and when that time came, he woulid be able to reduce taxation. In February the income tax Avould he collected and the officers of the Department, Avho kneAV their business, advised him that next year’s income tax would be two millions less than that of the previous year. They had faced a drop last, year as well as a 'huge drop in Customs duties and in other Departments. They had got through it last year, and he could tell them they Avere going to do all they could to

get through it again. He could not tell them that the country was going to have a surplus, hut they would do everything possible to show the people of this country a satisfactory balance-skget at the end of March next. He believed the country was now well round the corner in its recovery from the depression which had afflicted it, in common with every other country. The prices of our produce had improved very considerably. Woo/ was a lot better, and be predicted that the new season was going to open very well. Dairy produce had taken the place of wool as our chief primary industry, and the returning prosperity of this country was largely due to the energy and hard work of the people on the dairy farms of the Dominion. They deserved all they got, and he wished them all luck and happiness. Mr Massey also said the Government had done everything in its power to make both ends meet, and had got within £279,000 of it at the end of the last financial year. When it was considered that at. that time the Government had half a million pounds’ worth of coal in stock above its usual supply, it would be found that a measure of success had been achieved. He did not want to do any borrowing more than was absolutely necessary, but there would have to be another loan and it would have to be raised in England. But it was fortunate that New Zealand was the favo’urite Dominion, and could, if it kept ’within its means as at present, raise it on very favourable terms.