The Taihape Daily Times. AND WAIMARINO ADVOCATE THURSDAY, NOVEMBER 28, 1918. THE FINANCIAL STATEMENT.

Taihape Daily Times, 28 November 1918, Page 4

The Taihape Daily Times. AND WAIMARINO ADVOCATE

THURSDAY, NOVEMBER 28, 1918. THE FINANCIAL STATEMENT.

(With which is Tucnrpnrated The faihape Post. and Wart;-arno Naws).

The Financial Statement presented * to the House yesterday was looked for with more than usual interest and, perhaps, concern. The subject of taxation was the disturbing element, but it provides for no increase, and there seems to be good reasons why the Minister should endeavour, for some months to come, to refrain from adding to such direct charges in connection with both incomes and land. The increase of indirect burdens is making up all that is required for the country to meet its liabilities, extraordinary though they be. Two incidental conditions prevailing since the formation of the National Government may have tended to enable the Minister, with his more than ordinary financial perspicience, to pursue a course of taxation and borrowing that, under those circumstances, no critic should cavil at The necessary provision for carrying oh the war. with the addition of the Government being no longer responsible to the constituencies, but merely to the House, constitutes a strong position, and enables the Minister to pursue a strong financial course which the vagaries of ordinary times and circumstances might not subscribe to. The war is now at an end, but not so finance and legislation arising out of the war, and not till after the session of next year will I the voice of the people do much in tempering the incidence of all forms of taxation. There is much in this year’s Budget that a critic captiously inclined could find to revel in; the wage-earner at one end and the largest payers of income and land tax at the other, each furnish material about which columns might be written, but, without going into details, we are distinctly of opinion that the Minister’s position and powers have been used in the best interests of the country firstly, and consideration of the personal and individual element secondly. The larger taxpayers will be the loudest and most persistent complainers, but recent revelations, and discoveries among the masses arising out of recruiting ought to arouse whatever discretion they are capable of; they arc Indeed fortunate that Sir Joseph Ward has navigated his financial way between the breakers on either side of Mm with so little friction, and without having a timber of his financial barque shaken. The total revenue for the year, £20,206,221, is an increase of £1,838,674, the greatest contributories to the increase being land and income; the revenue from these two sources amounting to £7,005,269, an increase over the previous year of £2,030,025. The noticeable deficiency is that in customs, which is .well on the way to being half a million. The net increase amounts to £1.838,674, but expenditure has increased by £1,061,517, still leaving a credit of some £777,157. The surplus for the year is, of course, arrived at by subtracting the total expenditure from-the total revenue, leaving £5.085,934. which, added to the previous year’s surplus, £6,474,854, gives the gratifying resultant of £ll,560,788. The only item on the revenue side that calls for remark is the increased profit recorded under Postal and Telegraph. It is felt that such increased profit should not have been possible under the special circumstances; it constitutes an imposition, little, if anything, short of being cruel. The tariff now prevailing has transformed a public service into something almost solely available to the rich; it is a burden and bugbear To the ordinary business man and this erstwhile public telegraph service has no existence for the poor, many of whom have not the money demanded by the Department that permits them to have the saddest of facts in con- I nection with the prevailing plague transmitted to relatives. It is hoped the Minister will realise that in the interest of the masses it is time the taxing proclivities of the Department over which he presides need some attention. Otherwise, revenue and expenditure do not call for anything but expressed satisfaction with the Minister’s display of financial strategy

and its very obvious success. There is only one aspect of the reference to loans raised for War Purposes that calls for remark'. Sir Joseph Ward states that the cost of the loans raised in New Zealand compares very favourably with the cost of those raised in Britain, and he might have added that these costs did not go out of this Dominion; that they were distributed among New Zealanders, therefore the country did not lose one shilling of its riches in the transactions. Had those loans been issued in London £178,275 would have been lost to the Dominion, probably much more, for brokerage and other expenses. It is regrettable that there is a possibility or probability, that lenders may be unable to carry their investments and so retain all interests in addition to flotation charges. New Zealand loans earing interest at equal to per cent will find a ready sale if quoted on the London market. The Minister stresses the magnitude of additional expenditure if the pressure brought to bear on the Government were acceded to. Six millions were wanted for waterpower schemes; three millions were demanded for additional Education requirements; such amounts, he states, are beyond the capacity of the country at present. With £3,500,000 interest and sinking fund on wax loans; £1,000,000 for war bonuses to officers of the Government service; £2,667,000 authorised for railway improvement would total expenditure of £15,t67,000 in addition to the heavy burdens the people are already shouldering. The Minister feels it his duty to utter an emphatic warning to the public, and to Members of Parliament against making any such demands, at least, until the country knows what its full war responsibilities are. The Statement under notice is a very comprehensive document; it deals with many subjects of pressing importance to the whole body politic, all of which will bear discussion that cannot help proving profitable. Sir Joseph Ward by his reticence, is evidently uncertain about much of the future, but in his concluding remarks he states: “It is difficult to estimate the future effects of the war, but the enormous wastage caused by' devastation in Europe must be replaced, production will be stimulated trade increased. It is essential, therefore, that we should be prepared to take advantage of the increased activities in commercial and industrial pursuits, by encouraging to the utmost extent the productivity of this country and the extension of local industries and land settlement This can only be attained if all classes cooperate with one another and combine to work in harmony for their mutual benefit, and for the advantage of the country.” The last sentence provides much food for thought; it is an assertion that something must be accomplished which past experience has tended to prove impracticable and impossible. Sir Joseph Ward has realised that faction and shibboleth begat of greed are fatal to the attainment of the glorious future that is now awaiting this country. All classes must co-operate and combine to work in harmony, they are to go forward with cheerful and inflexible determination to work together, which only will eventually enable the country to fulfil its high destiny and win a place of honour among the nations.