The Putaruru Press PUBLISHED EVERY THURSDAY ’Phone 28 P.O. Box 44 Office Oxford Place THURSDAY, JUNE 12, 1930. THE FINANCIAL POSITION.

Putaruru Press, Volume VIII, Issue 342, 12 June 1930, Page 4

The Putaruru Press PUBLISHED EVERY THURSDAY ’Phone 28 P.O. Box 44 Office Oxford Place THURSDAY, JUNE 12, 1930. THE FINANCIAL POSITION.

THE new Prime Minister has made an excellent start by taking the country into his confidence on finance. His statement is a very frank and plain one. It is a warning to the public. But until the Prime Minister has had time to examine details and explore certain avenues for receipts it cannot be said how he proposes to meet the deficit.

The most serious matter is the continued increase in loss over the railways. If such a state were peculiar to New Zealand it might be held to rest in the management. But since railway deficits are practically worldwide it points directly to the larger problem of co-ordination of road and rail transport. The suggested commission will only discover what is known. If the Government has been serious in its efforts to deal with the transport difficulty then it should be able to present suggestions for the cure of the evil, which is only what the commission could do. Particularly will the Government have to examine its railway construction policy. It cannot afford to exclude projects which point to nothing but adding unprofitable sections to the railways, whatever steps it may take, to exercise economies in other directions.

PLEASURE AND ECONOMY. IT is a characteristic of New Zealanders that they take their pleasures gladly. If there is- a need to economise their pleasures will come last. The recent holiday afforded a proof. Politicians have been speaking of the need for strict economy ; the public has been warned that there is an anticipated deficit of three millions ; businessmen are complaining of hard times ; professional men will tell you that “ money is tight.” But the gate takings at the big football match at Hamilton “constituted a record ; some 30,000 people paid from two shillings to half a guinea each to see a football match at Wellington ; thousands attended the races, though the totalisator returns showed a falling off. It might be held that such action indicates lack of appreciation of the true position or no serious attempt to meet the economic needs. Against this it may be urged that the depression is not so serious as is made out—it is only temporary. But neither view can be regarded as quite correct unless it is carried out to its full entirety. Money may be spent on amusement, but it may not be expended on things of a material nature. It would be better for the country were the position reversed. But after all the spending power of a community must be regulated by the earning power. No matter how much may be said as to what should be, people will continue to act as they are accustomed to, though variation will exist.