The Taihape Daily Times. AND WAIMARINO ADVOCATE TUESDAY, JANUARY 15, 1918. THE FINANCIAL OUTLOOK.

Taihape Daily Times, 15 January 1918, Page 4

The Taihape Daily Times. AND WAIMARINO ADVOCATE

TUESDAY, JANUARY 15, 1918. THE FINANCIAL OUTLOOK.

( With which is incorporated The Tai hapo Post and Waiciarino News).

Once more the Minister of Finance has made pointed reference to the financial extremes to which this Dominion is rushing at lightning speed. He is again lifting up his yoice and calling from the housetops, warning our people of the hitter times that arc upon them and they do not seem to heed him. A colossal public debt is mounting up and millions more are yet to be added to it to enable the country to pay its way in connection with the war. When the war is over

and international peace reigns the're is cause; to fear for social, political and domestic peace, for millions will still oe required to pay the interest on debts, to provide pensions for soldiers, for the upkeep of dependents of men slain and for the reabsorption of men into civil life. There is quite an army of high-salaried men in the defence service, many of whom could with distinct advantage now be dispensed with, to be scraped off and put to produce the needs for their life and a little more if possible. The Government will be in such straits that most extraordinary measures will have to be taken to furnish the money that is only sufficient to pay the minimum of what is demanded of it. Sir Joseph Ward has commenced to talk plainly; he is dispelling the illusion and presenting to us a full, clear view of the fool's paradise we are striving for. It is not the first occasion great financial difficulties -have loomed up almost to overwhelming proportions before the Hon, J. G. Ward, but hie was in different companionship in those days. He was working with men who were putting into practice the beneficent policy evolved by the Hon. John Ballance, a policy for the uplifting and betterment of the masses of the people. To-day he is encumbered with men who have instituted and who support a system of land aggregation and taxation through the customs, a system that makes for high cost of living while robbing the people of their spending power. To save this country from financial calamity brought on by persistence in a land policy similar to that which is now statute law, J. G. Ward, the then Colonial Treasurer, found it essential to put the country's credit behind the B'ank of New Zealand to enable it to keep its doors open. Millions had to be found to save the country from the results of a policy of land aggregation and the levying of the bulk of taxation from those w&o were least able to pay it. The political history of this little country is running in very small cycles; here, for a second time, is a Colonial Treasurer or Minister of Finance calling aloud for more land settlement; an increase of smaller areas; an increase of people on the land; for more intensive farming; for an enormously increased production; for much more produce to sell. He again warns men of the Civil Service that this country can only be saved from financial collapse by an enormously increased amount of money coming into the country, and the alternative of this, .he tells them 7 must toe a resort to crushing taxation The coming financial conditions are going to be something that is without parallel m the history of -the country in magnitude and severity, and the Minister calls out for an old, well-tried, successful expedient. He states that he country must not stop at howling for "settlement and still more settlement/' but that there must be a reverting to something 0 n the lines of

the old Seddon Government land set-

I tlement policy; of something parallel to special settlements and village settlements. This country is no longer :to be mesmerised, cajoled and fooled into the idea that no man can grow 1 produce unless he has had special 'training. . Every man, and even woman is born with the same instinct to produce food as they are for oval-suc-tion. Is it not a fact that the successful farmers of to-day were, only a few years ago, labouring men, streetsweepers, tradesmen, drapers' assistants, who got on land under the splendid settlement policy of the Sed-don-Ward Government? Of course it is, and a hundred could be named of such men, some now taking a leading part in the Farmers' Union. It is regrettable to have to say that some in i the most humble sphere of life who became possesed of land through membership of a special settlement association, now rich men, are the most bitter opponents of liberal land laws today, such laws as must be put into force if financial calamity is to bo averted. It is well that men now on the land should fully realise the position It is fairly obvious that they will not be allowed to retain possession unless they produce to the fullest extent. If they do not so use their land as to meet the liabilities of the State, it must be taken to liquidate the State's debts. A State is no more than a business in that respect, an--] bankruptcy follows inability to meet obligations. It is time to climb down from any imaginary heights of false stability < If any country cannot pay its way the creditor takes such possession as will satisfy his demands The money has to be forthcoming and in New Zealand it must all come from the land; apar,t from the land we have no wealth, therefore the land is responsible 'for the country's debts. This journal has frequently placed this fact before its readers, and has urged increased settlement; a greater number on the laud to share the liability and to produce to help in liquidating it. The enormous indebtedness that has accumulated will not remain inert by the waving of any political wand, by howling out political shibboleths; the only open sesame to freedom from debt troubles, to progress, business prosperity and comfort of the people, lies through more settle-. incut, closer settlement and a hugely increased production; but when is this panacea 1 for all our financial ills to be commenced? Sir Joseph Ward has proclaimed in almost iuentk:;.

words what this journal has been e deavouring to impress upon apparently deaf ears time and again. Every man, woman and child is vitally concerned, but will they hear his voice, will they heed his call and profit by what he states? There Avas nothing equivocal about his statement, it was frankness itself and direct to the point. His words are: "This country has got to have small land settlement and an enormously increased number of people on the land in order to provide an enormousiy increased value of exports to bring the enormously increased amount of money into the country, so as to meet obligations without having to resort to crushing taxation." He plainly indicates that we have passed the stage in the magnitude of our obligations Avhen tightness can be tided over by further borrowing We simply cannot borrow more until we produce more tn provide better security. We are in perfect accord with every word we have quoted from the Minister, but how long, we urgently desire to know, are we to wait before the settlement is to commence on which the State must depend for its salvation?