NEED FOR CAUTION.

Taranaki Daily News, Volume LII, Issue 26, 24 February 1909, Page 4

NEED FOR CAUTION.

STATEMENT BY A MINISTER. i In the course of lis speech at the reception tendered to him in Duncdia on Friday night, the Hon. J. A. Millar, .Minister for Railways, made an interesting i statement on the financial outlook and the need for caution. lie had been twitted (lie said) sometimes with departing from the policy of i the Liberal party in regard to opening up the couutry with railways. He was not departing from the policy laid down at any time. All he said was this : We were face to face to-day with a position 1 that had not arisen for some years. There was a financial tightness not only in New Zealand] but in all parts of the world. The trouble that took place in America was affecting this couutry. lie was pessimistic enough to say that the barometer pointed to caution. lie was optimistic enough to say that there was no trouble looming as fa* as New Zenland was concerned. But notwithstanding that he believed there was no immediate trouble coming, it was the duty of the Government to reduce its expenditure as far as it possibly could. What was causing the tightness of money '! If they looked at the value of the exports of last year they would find it was four millions sterling less than that of the previous year, whereas the imports had increased by nearly one million sterling. Well, if they had not got four millions in the country that they would have liad, or ought to have had, if the values had! held, and they had had to send a million more out of the country—and money had also been sent to Australia —could they wonder at the tightness in this country when there were available live millions sterling less than there was 18 months ago 1 That was the position in a nutshell. This year the prospects were a good deal better. The price of wool had gone up, and, as far as one could see, judging by the outlook of the harvest, they were going to have a very good season. They also knew that the money market was getting easier, so that if the value of products rose, bringing still more money into the country, there would be more money available for different industries and commercial pursuits throughout the country. At the same time, it behoved the Government to exercise a great deal of caution not only in the Railway Department, but in the other Departments, in order to see that the expenditure was kept within fair boundk, while in no way bringing about an unemployed crisis or anything like that. There was no need for [ panic or for an undue extent of reduci ion of hands, but there was need for caution—that no more men were eniployed in the Government service than r there was work for them to do.—(Applause).