NEW ZEALAND FINANCES.

Shannon News, 22 August 1922, Page 3

NEW ZEALAND FINANCES.

COUNTRY-HAS TURNED THE CORNER.

"THE FAVOURITE DOMINION."

While speaking at Foxton last night, the Prime Minister (Mr Massey) said h e had recently had the figures for the first four months' operations of the present financial year. During those months the revenue went down by £450,000 less than the corresponding four months of last year. But he had this consolation: that the expenditure went down by £1,200,000 in the same period, j 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 would feel the benefit shortly. Long before the end of the year had been reached, the expenditure would be well, within the income, and when that time camej, he would be able to reduce taxation. In February the income tax would be collected and the officers of the Department, who knew 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 di-op 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 were going to do all they could to get through it again. He could not i tell them that the country was going to have a surplus, but they would do everything possible to show the people of this country a satisfactory balance sheet 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 bur produce had improved very considerably. Wool was a lot better, and he 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 tliey got, and .he wished them all luck and happinesss. Mr Massey also said the Government had done everything in its power to make both ends meeet, 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 favourite Dominion, and could, if it kept within its means as at present, raise it on very favourable terms.