THE FAMILY PURSE

New Zealand Times, Volume LIII, Issue 12613, 25 November 1926, Page 9

THE FAMILY PURSE

HOW DOES IT STAND? TRADE BALANCE IMPROVES GOVERNMENT TAKEN TO TASK A satisfactory position in regard to tho Dominion’s trade was revealed by the Minister for Industries and Commerce (the Hon. A. D. McLeod) when speaking to delegates to the Associated Chambers of Commerce Conference yesterday. He anticipated that when the end of the year arrived tho figures for exports and imports would very closely approximate each other. “This is a strong, and a wealthy country,” said the Minister. “Certainly we liavo had, are having at the present time, and will have, our periods of depression, and it is only by earnest hard work and a desire to view the difficulties of each section of the community that w'e will be able to surmount them. So long as this spirit is shown by all classes in the country I do not anticipate any serious difficulty. “It is satisfactory to know that tha tfade balance —which is always of importance—is in a much more satisfactory ]>osition for the first nine months of this year than it was for the corresponding period of last year. The figures for exports and imports very closely approximate each other, while the period which we generally consider to be our exporting months, ar© yot ahead of us. “Prices will this year not be so high; in fact, we anticipate a considerable fall. However, if we are content to keep ourselves within the necessities of the country as much as possible—avoiding luxuries —I have no fear that this country will come out all right on the trade balance side.” A DIFFERENT VIEW The outlook of the president of the conference (Mr A. H. -Mackrcll, of Invercargill) was not so bright. In his presidential address he criticised Government administration, and urged action to settle the Dominion’s problems. “The past year has witnessed a serious reverse of the balance of trade,” he said. “For the first time in more than twenty years the value of our imports exceeded the value of our exports, and this difference, together with the annual interest bill on foreign loans, totalled somewhere in the vicinity of . twelve million pounds. The trend of values of exports this year points to an equal or even larger deficiency unless importations are greatly reduced. Just how long this state of affairs can go on -and we can remain solvent is highly problematical. “The individual, when employment is scarce, promptly economises to enable him to live within his income. The business man, when his trade is decreasing, promptly sets his house in order by cutting down expenses and conducting his trade in such a way as to make his accounts balance. But f regret to say this is not yet so with our Government, COST INCREASING “The cost of governing this Dominion is not decreasing as it should, but in many respects increasing. The family purse of the Dorni nion controlled by exports and imports, is paying out more than it is receiving, yet the household has not made any appreciable attempt to cut down expenses and economise. “More money is borrowed each year. The mortgage is growing, and the burden of Government expenditure is increasing upon a community which, with the reduced value of our primary products, is becoming less and less able to bear the strain. “Many more details of interest could be given, but these figures will serve to illustrate my point—that the position is serious, and we will strangle ourselves with the high cost of government and heavy taxation unless something is dope, and done quickly, to relieve the position. “It is not a pleasant duty for any Government to tackle. It requires courage, skill, and determination, hut it must be done, and the sooner a start is made tho easier it will be. LOCAL BODIES “While making this criticism of our Government administration, I am not unmindful of our public and local bodies. They, too, are transgressors. The local body debt of the Dominion has increased and is still increasing in an alarming manner. For twenty-five years the increase was at the rate of £1 per head of population per annum, and the last three years this increase has been about doubled. “It is gratifying to note that a measure was passed last session for the purpose of restraining in some degree unnecessary expenditure on the part of local bodies.”