The Southland Times PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY, JUNE 26, 1920. THE GOVERNOR’S SPEECH.

Southland Times, Issue 18859, 26 June 1920, Page 4

The Southland Times PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY, JUNE 26, 1920. THE GOVERNOR’S SPEECH.

j The slock criticism levelled at the speeches delivered by successive governors at the opening of Parliament is that thev do not reveal very much of (he government’s mind, but however justified a complaint of that nature inay r have been on occasions in the past, there can be no question about the magnitude of the programme that was outlined for the coming session in the speech delivered y'esterday by Lord Liverpool. There is a decidctl note of warning in the speech and a statement of the difficulties that beset Cabinet. There is no questioning the fact that many of the conditions that arc giving rise to the government’s anxiety are beyond its power to alter and the enumeration of thorn is sufficient to show the tremendous influences that they can exert upon the dominion's public and private affairs. The government reminds us that;

We cannot to any appreciable extent control the landed prices of imported articles or the rates of foreign exchange nor can we materially reduce our public debt or the burden of the greatly increased interest and sinking fund which drains our revenue and compels the levy of taxation at rates above anything in our experience before tho war, nor can \vc obtain from tho English money market the loan moneys to meet the demands for works of all kinds, many of which are absolutely necessary. With these external influences at work, the government has before it demands from all parts of the country for operations involving the expenditure of large sums of money, and it seems inevitable that the revenue will not be equal to the outgoings. Education, the post and telegraph department, public works, housing schemes and hydro electric projects, to mention some of the causes of (his rush for public money', are being pre.-sed upon the government and in addition there is the undoubted necessity for further expenditure in the interests of repatriation. The government will be severely criticised when it brings flown its definite proposals for enlarged expenditure and increased borrowing, but it must be remembered that most of this lay-out of money is being made in response to insistent demands by the public. It is difficult at this stage to declare with any weight of confidence that any particular department of the State’s activities can bo subjected to ruthless postponements, but we will expect the house to be in a critical mood ami to challenge any expenditure that can be reasonably held over. Economy, of course, is an easier think to talk about vhan to effect, but much can be done if the ministers, especially those who have been lately added to the Cabinet, will live up to their declarations and eschew anything in the nature of soothing syrup expenditures, especially in connection with our public works. There has been in somt quarters some lively criticism of the government's increased departmental expense, and doubtless there are points at which some little retrenchment might he secured, but in the main the items in question have been swelled by the necessity' for giving higher salaries to public servants and for paying higher prices for material. No one will question the merits of the public servants’ claim to reasonable treatment in connection with (heir pay and we tire pleased to find that the railwayman have received an offer that seems to bring them on a parity with the increased cost of living as compared with the position in [ire-war flays. However much we may deplore the fact that those increases necessitate higher charges for our principal public services, the fact remains that the State cannot hope to escape the problems that are forced upon private employers. There is in the Governor’s statement a clear warning to us to expect increased taxation, and in tho imposition of this burden we hope that, the opportunity will be taken to correct, some anomalies that exist and to sec that the apportionment of these additional imposts is equitable. The Board of Trade Act, from which s.o much was promised, has fulfilled the expectations of the cynics and has shown itself to be defective, but we are promised further legislation tiiis session to remedy these faults. The claim that ‘‘there is substantial evidence that abnormal increases in prices have been prevented by existing legislation and that under its influence trade is gradually becoming established on a more reasonable basis” will excite some adverse comment, but undoubtedly the publicity that has been forced upon firms dealt with under its provisions has had such serious effects (hat any traders that felt like going in for extravagant profits have been made to think deeply of the risks entailed. The profiteering about which we hear so much, however, is fur more widely spread than people think. It is to be found amongst the people who are loudest in their condemnation of the government’s failure to lower the cost of living. The man who sold his house at a good profit because a high price was offered to him, does not seem to understand that he has been doing what he does not want other people to do—to take advantage of a weak supply- and a strong demand. We hope that heed will be taken of the warning that if our prosperity is to continue there must be a curtailment of extravagance. There are about us multitudinous examples of private extravagance. We arc still suffering from the spending habit, and it is no consolation to know that the people who have much of this world’s goods are putting money into distribution. Their waste is as serious as tho waste of any other section of the community. Tho great point upon which we must concentrate our attention, however, .is the expenditure of the public bodies, both general and local, but it is obvious that there can be no hard and fast rule about checking expenditure. Works that are necessary must be carried out if we arc not to go back, but

j our scrutiny must be careful, impartial and i entirely free from suspicion of political objects. The session is evidently going to be a full one, ami beyond doubt one of the most important in the political history of this country. The future is not without its brightness but the government and the whole of Parliament have tremendous responsibilities to shoulder, so tremendous that it behoves members and the public to be as patient as possible and to assist the Cabinet in whatever manner possible in the accomplishment of its great risk.