The Taihape Daily Times AND WAIMARINO ADVOCATE THURSDAY, DECEMBER 4, 1919. A RUSH TOWARDS BANKRUPTCY.

Taihape Daily Times, Volume XI, Issue 3353, 4 December 1919, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE

THURSDAY, DECEMBER 4, 1919. A RUSH TOWARDS BANKRUPTCY.

With which 113 incorporated “The Taihape Post: and Waimarino Newa.”

g In the luxurious living of a small [section of the people of this country ! the ordinary observer sees it writ large ithat it is the old carelessness -obtain‘ing about one half the people not knowing how the other palf lives. Sir Robert Stout is still impressing upon the wasteful class lthat. it is imperative’ in their own interests they should prag ~ ticc, not only economy, but rigid economy. Sir Robert Stout is not unaware of the stern fact that nalturc has ; alaw,"an inexorable law for the correction of man’s mistakes, the result of/ his cupidity and selfishness. Sir Robert Stout fears that nature will be compelled to apply her own cold, hard processes in punishing human breaches of economic laws, as economic chaos seems to be well in sight at this moment. People go on in their l11Xl1I"« ions living while thegrcater proper-§ tien of the masses are striving to, barely live; they do -not realise that; their ~ Government is levying -morcl than double the amount of. taxation; than was levied in 1913; they do notj trouble to note that the pro-fiteeringi and fortunate classes, are spending in‘ a similar ratio to that o-f the Government; it does not occur to them that spending money for unproductive purposes is wasting the national sub-* stance, as 2. spcndthrift wastes the! heritage that is his through the industry and thrift of others, and, like the wasteful squandering of the spendthrift their orgy of selfishness and thoughtlessness for the welbeing of the ' whole body politic will ultimately re-I coil to theirga and the State ’s disaster.‘ Pretend as we will that this is not what is happening, pooh-pooh, 11011-l chantly wave the hand, and shrug the shoulders, when mention is made of widespread disregard -of economic laws, as we may, ithcre is the haunting: fear that so-me impending disaster is oversliadowing our lifolly. ‘Sir Robert! Stout and other Jonahs versed in econ-; omics, are crying aloud to our modern Nineveh that the city will be destroyed, and like..t.lle ancient disregarders of economic laws, it scenes, ‘We’ shall continue our folly -till nature‘ cries a halt. Even men who pose as intelligent “know alls” fail to understand, wilfully, or indiiferently, thci State balance-sheet, and estimates for the current year. They do not know,” or are careless of the fact, that for, ordinary expenditure ‘taxpayers will! this year have to -pay double the sum‘ they paid in 1913; that the ‘cost 01’ running the State . business, has! increased by,‘ 100 per cent since 1913; that instead of each individual, man, woman, and child hav- i ing to pay £lO 16/ as ‘in 1913, they’ will ' have to pay upwards of £2O per head. This is for ordinary expenditure only the total sum required being about 29 millions, but in addition to» that sum another 30 millions is authorised for purposes other than ordinary expenditure, and when it is understood that a large proportion of the people are utterly incapable of paying such taxes, ti-On and living, it should prove an inducement for fortunate people to ‘pender over the problem that forces itself upon them. The "Minister of Finance was not unawareof his demands being disproportionate ‘to,-the -capa.biliti'es of the people, for -he stated in Parliament, »~“ The attention of.Members' has been

lculled to the pressure brought to bear lupon the Government to provide‘ for I expenditure beyond the capacity of the lcountry to meet; there Was lIOVCI‘ E ltinie when necessity for national [thrift was greater than at the present i time." The Minister had in mind the {ominous fact that this country was l spending more than it was earning; he lfearcd, because no steps had 110011 ltaken to swell the earnings of the country that were required to balance. the expenditure he said, was. the re- ! sult of pressure that had been brought l to bear on the Government, presumably ‘by Members of the House; but as his! lparty constituted a majority of the l House, why did his Government submit pie such disaster fraught pressure? ; However. it is idle to disciiss that now, lthe unprecedented burden of taxation , has to be borne by those who have the l money to pay it, and if they are satisl tied to have taxation increased by 100 lvper cent every few years for ordinary lexpenditure, and by another 100 per ! cent for expenditure that is the result i of the Government giving way to pres- ; sure, knowing the taxpayers, profiteers, land others were utterly incapable of lfurnishing the money, that is -largely ltheir affair. But it is advisable to l think out this taxation problem, for if lthe Minister ’s demand for double the }amount collected in 1913, and double itliat amount again owing to presumed l unreasonable pressure, is going to continue in subsequent years, is not the country rushing into bankruptcy by the Minister’s own admission that expenditure is already beyond the capacity of the counti-y°.’~ And if the Gov‘ ernment finds that it is utterly necessary to cut down expenditure by‘elilminating sums that are ‘the result of undue pressure, will the cutting out of those’ twenty millions produce a national slump unequalled in history, not surpassed by that after Waterloo, when Government had to pass a law making it legal for men to beg? We are commenting upon the warning lgiven by the Minister to the country Efrem his place in Parliament, and we ltlllnk it imperative that it should be fully understood that with a doubling of per man, woman, and child liability over that of 1913, and a, further doubling for providing an-other 30 millions for other purposes, the per capita liability this year will be over £3O per head, as compared with £lO per head in 1913. Of course, the Minister knew it was beyond the ‘Country is; power to pay such a sum, and every thoughtful person, worker, employer, and every woman who has to keep house should know that it is proposed to spend-more money than the whole country, man, woman, and child, l1!1V0 got to spend. In other words, this country is living beyond its income. It is certain that the Government will have to make some effort to extort the money from taxpayers and what will be the result‘? If_farmers and employers have their taxation bur. den -raised, the quota of 200 per cent over the 1913 burden‘~ there will be trouble, but when it is discovered that the masses become desperate and revolt against the demand for a 200 per cent increase, which to them. would prove a taxation. impossibility, will the few who have the money consent to shoulder the whole responsibility, will the country be forced into repudiation, ,or will taxation proposals be revoked, -making‘ it impossible;.to ‘pay soldiers’ and dependents’ pensions, besides causing cessation of all public works‘? Sir James Allen is not a magician; he has plainly told the country that his .party has been forced into an expenditure that the country is incapable of, and is it not time for the people to C)Zt‘]‘(‘.-ISC seine commonsense over this rp,s,h,i,glg,, towards bankruptcy? Sir Hfobent Stout and other thinkers and economists are trying to convince the: people that real financial, producing} and industrial breakers 111‘(}‘tl.ll(‘.£l(l, butl many of those who should listen too busy'in their pl‘ofllCCCl‘ll],‘_l, while‘, the great masses of the people are‘ striving to make ends meet. The one and only specific for the taxation.‘ disease is cloiiblirig of trcbling the volume of production per head; this is‘ not only disregarded, but, to make ina.t.. tors still more desperate, my are pui--l suing the road of lessening the volume ‘ of production per eapita. If this eon-‘ tinues what will it eventually lead to‘? The present situation cannot be tolerated, but a. continuation of tilt process demands the earnest thought of very man who cares for the politician less than he cares for the honour‘ and prosperity of his country. 1