SPREADING THE BURDEN

Rotorua Morning Post, Volume 1, Issue 194, 9 April 1932, Page 4

SPREADING THE BURDEN

The eagerly and anxiously awaited financial statement and outline of the Government's legislative programme for the remainder of the present session, made by Mr. Downie Stewart in the House of Representatives on Thursday evening, contains no surprises, unless the fact that the Government has apparently adopted the recommendations of its economists' committee and economy commission, ahd' proposes a substantial general reduction of interest rates and lease rentals can be so classed. IF, when the details are made public, the Government's proposals

are f ound to be precisely what they now appear, lt wih at least have earned some credit for courage. It must, in reaching such a decision, have had to resist strong pressure from interested quarters. The fact that the country on the whole seems to favour the deflationary rather than the inflationary method of seeking economic equilibrium will have helped it, however. Reduced to essentials, the political controversy, both in New Zealand and elsewhere is between the two schools of thought. Each has something to recommend it. Inflation undoubtedly would immediately ease many burdens and apparently solve many difliculties. It has, however, the great disadvantage that it would, unless the whole world can agree upon a method of re-establishing its exchange and credit systems on a liew and higher level of currency values, create as many difficulties as it would solve, while it would also leave a painful legacy fof the future to deal with. Deflation, on the other hand, undoubtedly is a painful business and increases while in progress the burdens of the whole people. Once accomplished, however, .it will place the countty in an alrriost unassailable position economically, wliichever method is finally adopted by the world at large. Great Brithin under her National Government adopted aeflation in principle, reduced interest, wages, social services and administrative costs, and within six months has balanced her budget, paid off niuch of her floating debt, reestablished international faith in her currency and won the admifation of an envious world. She'now seems to be reaping the feward of a gradually increasirig prosperity. Surely an example worth following. The Government's policy suggests an attempt in this direction. It is not proposed to essay the apparently impossible and aim at an immediate budgetary balarice, but the attempt proposed to deal .WitH the probleni of fixed charges will have the sympathy of a very large section of the people and at least the acquiescehce of most of those most directly affected.