The Daily News. SATURDAY, JANUARY 23, 1915. THE DOMINION'S FINANCES AND PROSPECTS.

Taranaki Daily News, Volume LVII, Issue 193, 23 January 1915, Page 4

The Daily News. SATURDAY, JANUARY 23, 1915. THE DOMINION'S FINANCES AND PROSPECTS.

I The official statement of the revenue and expenditure of the Dominion for the , nine months ended 31s<) December last, recently made by the Minister of Finance, should be studied with care by all who arc interested in the finances of the country. The total revenue amounted to £8,545,826, as against £>8,314,390 in 1913, an increase of £'231,526, but liad a sum of £112,600 for land tax been brought into account in December, instead of January, the increase would have been £344,126. From the revenue point of view there is justification for much satisfaction, the more so when the fact of the largely increased expenditure is taken into consideration. Unfortunately, the growing expenses were far more than the enlarged revenue. Brieliv, the position is (omitting fractions of thousands) Increases in revenue £312,000 Decreases in expenditure. 37,000 £349,000 Decreases in revenue .... £IOI,OOO Increases in expenditure.. 575,000

£670,-000 This sliows a deficit of £327,000, and even allowing for the delayed land tax amount of £112,000, the finances would still be £200,000 worse off than in 1913, chiefly due to the large increases of expenditure on interest and sinking fund (£139,000), and under special 'Acts (£120,000). The Post and Telegraph Department shows an increased revenue of £57,000, but against that is an enlarged expenditure of £102,000. The railways brought in an additional £163,000, at an extra cost of only £49,000, and this item is probably the most satisfactory of any on the list, for it testifies to the progress and prosperity of the country and the people in 110 uncertain way. No objection can be taken to the increased expenditure on education ( £68,000), for that service is one which has to a certain extent been badly treated in the past, though it is a department that deals with the greatest asset that the Dominion possesses. That the various increases on the expenditure account mount up to such a large total as £573,000 is somewhat startling, especially as the decreases only amount to £37/)00. and it iadicates that the tendency of the Government is to be more lavish than economical. There is no question, however, as to the ability of the Dominion to bear the increased burden, though if the process bo continued there must come a time when the pruning knife will have to be applied. At present the chief feature for which the Dominion has good cause to be -thankful is the wonderful prices obtained for dairy produee. To Taranaki this factor is all-important. So far this season the exports of checa# and butter show substantial increases, while the prices ruling in the Home market have established a record. New Zealand butter is now bringing 16i)s. per cwt., and cheese has reached over 80s., and as one pound of butter-fat will produce two pounds of cheese, it will be seen that the dairying industry is on an excellent wicket, especially now that the whey-butter industry is proving a very profitable .adjunct of the cheesemaking business. The graziers and stock-breeders are also having a splendid time financially, though the drought in places has had a detrimental effect. There is every reason to expect that the current season will be the best that the dairying industry in Taranaki has exix rienced, especially for those who have sold their produce on consignment. When the abnormal state of affairs in connection with the war is taken into consideration, there is good ground for rejoicing over the prospects of tlio Dominion.