Rangitikei Advocate. THURSDAY, AUGUST 1. 1907. SECOND EDITION. EDITORIAL NOTES

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8878, 1 August 1907, Page 2

Rangitikei Advocate. THURSDAY, AUGUST 1. 1907. SECOND EDITION. EDITORIAL NOTES

IT was significant tnat during 'the debate on the Million Loan Bill nearly every member who spoke expressed himself in its favour, though some criticised the methods oj. flotation. Not one seemed to grasp the idea that Under a proper fiscal system it would not be necessary to borrow, and not one suggested the desirability of cutting down some of the useless expenditure which has now reached such vast proportions that even record revenue fails to keep pace with it. Each member no doubt considered that if the money is borrowed he will be able to get something for his district out of the general scramble, and each member knows that his retention of his seat depends to a largo extent on his ability to secure the expenditure of money in his district. Therefore, when a borrowing proposal is brought forward few care to oppose it, lest when the money is being distributed they should be reminded that they were not favourable to borrowing, and therefore it is to be presumed that their districts did not require any works. Regarding the statements to the effect that the money can bo borrowed in the colony , we may point out that this does not improve the position; indeed, if it can be got cheaper outside it is better to borrow from the outsider. The fact that we do not now ask’the outsider is plain proof that the Ministry realise that the credit of Now Zealand does not stand as high a3.it formerly [did. It cannot, indeed, seeing that wo now owe about thirty millions more than wo did a dozen years ago, and have very little to show for the expenditure, except a few unnecessarily costly buildings in the chief tow r ns, and inflated laud values. It is unfortunate for this colony that the money the public deposit in various State departments can be taken by the State with fatal facility, and replaced by Government debentures—paper taking the place of hard cash. There is a danger in this to which we have previously drawn attention—a special danger in connection with Savings Bank deposits, should there be any unexpected commercial or industrial disturbance. The very first to feel the effects would be those who can least bear a financial strain, but who now believe that they are perfectly safe because their savings have been placed in a State institution. Their belief that it can be withdrawn at any time of need may receive a severe shock should anything like a general strike of labour occur, and there are numerous indications that such a | calamity may happen at any time. I The Savings Bank certainly ought to bo compelled to keep a large proportion of the deposits in such form as would enable it to stand even an extraordinary demand, as circumstuces may arise which would render Government paper absolutely useless to those who wanted their money. Seeing that the politicians do not care, or do not dare to opposs further borrowing, it is time the people themselves protested strongly against the rate at which millions of debt are being piled up, and compelled the management of the State Cooperative institution to reduce the working expenses.

AjMONG the recommendations of the Agricultural Conference are some to the effect that the State should do certain things for the benefit of the great natural industries. Socialists who confound State supervision or undertaking with their own demands for State interference with private enterprise, occasionally jeer at farmers who request State aid, alleging that the farmers are thus practically Socialists. But the managers of a State who did not aid the great natural industries, on whoso welfare and progress the prosperity of all the people depends, would be lacking in their duty. There is no similarity between the State assisting to develop the industries which create its wealth and the State being asked to assist those parasitic “industries” which prey on the natural. In proportion to the aid given by the State to the former all the people benefit, while in proportion to the aid given to the latter all the people suffer, and the natural industries are handicapped. No State can spend money more wisely than by aiding in the development of its primary producing industries.