The Daily News. THURSDAY, JULY 21. THE BUDGET.

Taranaki Daily News, Volume LIII, Issue 87, 21 July 1910, Page 4

The Daily News. THURSDAY, JULY 21. THE BUDGET.

Discriminating readers who carefully ! study the Premier's Budget will probably ! that it is the "meatiest' document | that Sir Joseph Y\ anl has produced. | ißoth in the record of performance and in the promise of fulfilment in the future, the Budget is satisfying in its completeness of detail and business-like construction. The actual State balancesheet is interesting to the people, nor for the- mere expression of sums spent, or revenue earned, or surplus shown, but for the result which these figures suggest in progress, development and general individual and national wealth. The average man does not understand State fin- | ance and therefore the fact that there is a surplus of £432,316 does not really appeal to him. He is interested mostly in the broad fact that a small community of colonists, without special increase of numbers, have larger spending pow-' ers year by year, the revenue to the State grows, and that with the development this indicates, expansion of indus- ' try must take place, and the State's ability to meet its liabilities be more assured. There is a large balance brought forward under the heading of "Public Works Fund," and this represents money intended to have 'been spent, but which has not yet been sunk in remunerative improvements. 1 The balance and new appropriations are an earnest of the continuation of a vigorous public works policy, although, on the surface, such balances show that the amount) c>) work contemplated during the year could not be undertaken. The policy of pushing on with land settlement—the most important of all the works in which any Government can be engaged —is strengthened, if the figures are an indication. Although it is shown that land legislation of the past in regard to the limitation of area by great landholders has induced some of them to cut their holdings up and to quit to buyers and tenants, the Premier mentions that the Government is handicapped in its endeavors to resume large estates by the prices asked. It was pointed out a week or two ago that the question of the near future was "territory, not tenure." The Government has very full powers in the matter of resumption, and the settlement of the large holding difficulty is in their own hands. The Budget is emphatic on the point that, the number of applicants for land is in excess of the land availtable. It follows that if the very small population of New Zealand cannot be accommodated with country, the inducements to very necessary immigrants cannot be large. New Zealand is particularly interested in the public debt, which is sufficiently large, but if the Premier's estimate that the national assets increase by three million pounds for every million pounds borrowed be a reasonable one, then certainly the obvious inference is that the more we borrow the richer we become. As another loan will be raised, it is, therefore, right to assert tha't by its use and the general advance i of the country we shall obtain in & short period an addition of several million pounds to our assets. If such increases are obtained without definite increase of population, the enormous resources of the country cannot be exaggerated. With great increases the national wealth would be augmented proportionately. There has been activity and the spending of money on railway communication, the general policy being to make railways before roads. Whether this is the best policy is a matter than admits of some difference of opinion. The promise of the Premier that roading will be vigorously pursued is gratifying. Mining is flourishing under private corporations, but although mining represents a small proportion of the wealth of the country, it has not the dominating influence on its prosperity that agriculture and grazing have. It is promised that an annual sum of £500,000 will be spent in the development of water resources by the Government. The proposal is indefinite, and it has not been disclosed in what manner the Government will use the power available. The supposition is that either the Government will compete -;th private folk supplying running water, will establish plants for the supply of power to companies or corporations, or will themselves create industries for the use of the power. If this yearly sum is really spent, industries for the use of power must be created in order to make the expenditure payable. If the Government has in view the profitable use of water-power, the expenditure would, of course, be justified. But if power i? created for problematical use and for problematical customers, the departure is unwarranted. Reference is made to oil. and, as we in New Plymouth know, there is nothing problematical about this industry, which only languishes for funds. If the Government can speculate half a million pounds a year for the supply of power to uncreated industry, it certainly can afford to put money into an industry that is already created and which promises great assets to the country by the judicious use of capital and industry. It 'is difficulty for North Islanders to understand that any country in New Zealand is liable to drought and needs irrigation. Though Central Otago is exceptionally fertile, it lactcs /water, and this is the reason why the Government wisely intends to proceed (with irrigation works. There is nothing indefinite about the creation of power

for such a purpose. The conduct of the. Xpw Zealand Department of Posts and Telegraphs is a pattern to larger conntries, and the promise of further facili-

ties is gratifying, especially in regard 1 to the increase of telephonic communication for the people of the backblocks.! The telephone is one of the truest friends of the backblocker, and no country on earth is more advanced in regard to many phases of verbal comnmnicaiwn than New Zealand. As wireless is probably the system of the future, it js satisfactory to know that stations are to be erected, and that the system may be operating within a year. The promise of the Premier that the question of the provision of homes for the people at reasonable prices will be definitely decided as of the utmost importance. At present the average man is engaged largely in working for his landlord. The splendid system of advances to settlers and others has enormously benefited the country, and has, to some extent, minimised the ®rip of the speculative lender. Tf anything justifies a Government borrowing policy, it is that a proportion of the money borrowed is again lent and [becomes remunerative nationally, as against systems of borrowing direct from speculative capitalists, whose operations naturally are not intended solely for the advancement of the State. The Premier's method for the extinction of the public debt is a subject of the utmost importance and requires more than cursory reference. Indeed, the wealth of suggestion contained in the Budget is so large that any feature might form the subject for the closest study and discussion. We hope to further discuss the many phases of this great document as time permits.