Page 4 Advertisements Column 4

Taranaki Daily News, Volume LVII, Issue 64, 4 August 1914, Page 4

EFFECT OX NEW ZEALAND. It has often been pointed out that the fundamental weakness of public financ? in Now Zealand lies in tlie fact that the persona responsible for it have, always acted as if .1 European war would never happen again (writes the Ohristelmrch Sun). The self-reliant policy was thrown to the winds year* ago, and has been replaced by one of almost complete dependence on the foreign money lender. The Government, 'having monopolised the railway transport business, and made itself generally responsible for tile opening up and development of the country, was bound to go abroad year after year for millions of money to give effect to its policy. Meanwhile, the deand for food products in the world's arkets grew, and New Zealand grew prosperous through her export trade. Now that the wa lias broken out, the vital questions to be considered are. first, what effect the war will have on our external trade, and, secondly, how far we can dispense with foreign loans. In regard to the lirst, we think it can be assumed with some confidence that the war will .have a very stimulating eflect on prices of produce. Vast suplies will be required for the maintenance of the forces engaged, and as in the case of tile South African war, the ew Zealand farmers should reap the benefit. The British and French navies are strong enough to prevent any ser-