The Taihape Daily Times AND WAIMARINO ADVOCATE. MONDAY, MAY 17, 1920. AN EMPTY TREASURY.

Taihape Daily Times, Volume XI, Issue 3488, 17 May 1920, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

MONDAY, MAY 17, 1920. AN EMPTY TREASURY.

With which is incorporated -“The Taihape Post and Waimarino ' News.”

The late war has laid a toll upon New Zealand which is now likely to result in much more grave conditions of industry and society than ever anticipated. This Dominion has contributed the best of its young manhood, and has placed itself in debt to an‘ unprecedented and never ACo’ll_t€lll.‘ plated dangerous degree. This journal has on many occasions pointed out that nothing has been done, nor hasanything been projected for lessening the appalling burden; but that is not the worst feature of this Domiuion’s

finance. Intentionally or unintentionally’ the financial situation is drifting from bad to catastrophic condfitions. Money is being used as ordinary commodities are used for profiteering purposes through differential loan rates of interest and exchange in various parts of the Empire. If it wefe intended that a gold drift’ from this country to Britain should resul't, the people of this Dominion were entitled to know all the facts. Certain it is that in some way money owned by private

individuals is leaving this Dominion tin‘ a mighty, alarming stream for 1»oc_alities where it will earn its custodians very much more than it can earn by lending it out for settlement am! development. of production in New Zealand, or it is finding its way to the headquarters of the Empire to assist in the nornla.lisaiTo'n Tit exchange. It was obvious that while :1 higher rate of interest was offering in Britain than could ibe got in the Dominion

money would find its way to assist in {the reconstruction of British industries instead qfbeing kept for reconstruction and increase of that production for which this young cbuntry is languishing. Whether the Government realises the situation :or not it is pursuing a policy, or is unconsciously clrifizing into a soulless and boclfiesg condition. The countl'y’s debts are piling mountains high, and even Mr Massey is com» mencing to quake with fear at the appalling spectacle. Long ago we drew attention to the financial orgy pro-

I'ceeding whiclr, if continued, could ‘only result in a repetition ‘of what oc‘curred nearly thirty years ago», when gfarmers failed in hundreds and (‘brought down, gvith their past folly of }permitting speculative and grafting finance, the chief banking institution '01:‘ the colony. Banks, to-day, are amply justified in presenting a determined disapproval of the crazy boom in land values, for the veriest fiool ought to realise that New Zealand products can only command similar‘ priceson the world’s markets as those ‘ products from other countries with‘ which they will‘bave to come into competition. The country must, however. look to the Banks to perform all

'the functions for which they were ‘chartered, which they cannot possibly do if the terrifying drift of New Zealand owned money for investment elsewhere continues. Cost of production owing to enormous land values, the perennial Wages problem. and the orgy of extortion termed profiteering, Willi be disa,strously_ higher than in Euro-‘N pean countries where such comiitians do not, and will noii exist.’ If lii were possible to secure uniformity of land, values," wages and profits in European countries, even such a condition would fail in stabilising markets,

while Japan, China, Siberia and other huge. areas in Asia. Afr-ica and .\merica, are being hastened into p1'0(1uc~ ing the necessaries of lifc_ llcfore ‘any levelling process can be dependled upon’ to operate in Eurofiéj there will Ibe upsetting conditions in opera.tion in newly awakened countries and ‘continents. New Zealand is building [up, largely by drift and greed, a fan!tastic financial and producing a.bnor!mality. Fictitious Values are being ‘put upon land and commodities which ,the Government are winking at, and they are seemingly uncon's‘cious of the abysamal financial and industrial chasm toward which they are rushing the country. Where New Zealand owned money is being invested outside the Dominion -tzherr are no recordsat present available to disclose, but that does not alter the fact. that it is going out of the country and therefore is going beyond the possibility of it being used in development of idle and only half used Dominion land. Money may be going from its legitimate functions in this countri’ to Britain, but it is not feasible that an additional one per cent would result in a. drift of; many millions to the i\lothel'la.nd. The fact that the ex-f change rate may operate E 6 Britishl adva.nt.'ige as Well as to British detriment, if to a? less degree, must not be i overlooked, and it may be that money ‘ is 3being invested in purchases for!

pi-ogressive delivery in countries where the pound sterling will now ,pay for two pounds. worth of goods. But let it be fully understood that Wherever th.e money accumulated by New Zealanders is going to, the continuance of the drift can only result [in an impasse that may be productive _.of starvation notprevolution. We know that thoughtless and ins'uffi~ ciently informed people may think someone is outlining a financial and tindustrial fiction. Let us say that (there were scoffers in the early nine—ties when journals pointed out the inevitable collapse that resulted from similar crazy operations. but the collapse came, and hundreds of farmers were ruined, and _poor people V?/‘ho had linvested theirail in bank shares were rendered penniless. We are‘ drawing attention to the fact that it is an utter impossibility to go on prosecut-ti ing any policy of reconstruction; Go-it vernment has not the money to con~i tinue the settlement of soldiers who. are waiting for land‘, because it should be known that the wherewithal is notj in the country..lt is time to realise! that the man‘Who o"wns land valued at 1 10-ne hundred pounds a.n acre may, ‘within a year, ownuland Worth only! fifty pounds an acre. But what is of! iparanlount importance to keep in view I is the fact that while land of equall ~value in other éfiuntries is one-tenth the price it is here, and while ample labour is availible at one—tenth what is paid for it in New Zealand, economic laws will operate to a levelling that must prove -disastrous to ‘t.‘i:t"¢: country. The national Treasury is emptyz the Government has no money for development of the country, and ‘Mr Massey is expressing grave doubts ‘:lbol;<'t the futiire. He is hopeful, but he does not disclose the basis of his _ hopes, and they are far from obvious to the ordinary citizen; there will «be no full, understandable disclosure offi the situation until Parliament meets, and ‘the financial conditions generally! are so serious that‘ a day should not! be unnecessarily. lost in calling Par- I liament together. Before the elec-' 'tions Mr Massey proclaimed that [there would be no increased taxation, ibu't it was undeniably clear that un~ ilimited profiteering on the same goods ‘by both Government and merchant‘ ‘must result in its own wreckage Nor] kno\Ving the actual cause of the drift of money for invesitnient elsewhere it is not prudent to lay blame on any quarter, but that does not alter the fact that what is happening is going to make the raising of Government 1011115 Within the Dominion difficult, ii not impossible, and therefore should be taken as an indication that -taxn-U “On is TIT<9IY to be oppi'essfir'e“ly increased.