The Daily News. FRIDAY, FEBRUARY 11, 1916. ECONOMY—VOLUNTARY AND COMPULSORY.

Taranaki Daily News, 11 February 1916, Page 4

The Daily News. FRIDAY, FEBRUARY 11, 1916. ECONOMY—VOLUNTARY AND COMPULSORY.

The need for economy in these times of national stress is slowly but surely passing from the ethical to the practical stage in Britain. There is dawning upon the leaders of thought a new light as to the effect of the war, and they are bringing to bear on the economic situation practical methods for enabling a prolonged war campaign, knowing that the struggle connected with the husbanding of resources is even of greater importance than that of shot and shell. It has been said by many who are in a position to judge sucli matters that victory must inevitably go to the side which can best stand the enormous financial strain, and it must also be remembered that there is the aftermath of the war to he met and tided over—a task that will probably involve even greater sacrifices than those demanded by the war itself. We note with pleasure that recent London cables intimate that the economy campaign is proceeding apace. The very fact that the daily war expenditure of Britain is o( such vast proportions must surely convey its own lesson to the people, but unless practical measures of economy are placed before the nation, the mere preaching on its urgency would be futile. It is essential to the success of any scheme of national economy that it should proceed from the various departments concerned in raising money by rates or taxes, and thence downwards until the whole nation is brought un--der t!ie process. Much can be done by example and voluntary effort, but, as Mr. Alfred Bcoth pointed out, voluntary effort may help, though it cannot win the war. It is therefore necessary to supplement voluntary effort by compulsory measures, for unless that is done there would be an important section of the community which would pursue its selfish pleasures and indulgences, leaving the rest of the people to bear the brunt of necessary sacrifice?, so that to ensure individual thrift being universal it should be secured by ruthless taxation of incomes and articles which are not absolutely necessary for consumption. Taxation of unneco?saries has also the advantage of favorably affecting the balance of imports as against exports, and so materially advancing the nation's financial strength, and this is the prime need in war-time. It is, however, in the sphere of local bodies' administration that appreciable economies can be made. Only those who are acquainted with the prodigal expenditure of these bodies in the Homeland can have any conception of the way in which money is poured out like water, though in New Zealand we have far too many cases of grosa mismanagement of local affairs in the direction of callous wastage. The total amount of loans outstanding against local 'authorities in Britain at March, 1913. was £413,712,000, and the total

amount; received from public rates by | lceal authorities for that year £68,813,000, in addition to which £21,745,000 was received from Government grants, £27,316,000 from gas, water, electric light, etc., and £13,093,000 from other sources, making a total of nearly £131,000,000 exclusive of loans. The chief item of expenditure was education, which absorbed over thirty millions and a half. It was not till July, 1915, that the British Government appointed a Retrenchment Committee, to report what savings could he effected in public expenditure, and in the following month local bodies were impressed wit'h the urgent need of stringent economy in every branch of expenditure; but it soon became apparent that some outside stimulus was needed to ensure the required economics. It would seem that at last these bodies have recognised that the time for action could no longer be postponed, and they are now rigorously cutting down rates. The Government is also moving in the same direction by reducing postal deliveries, imposing restrictions on importation of luxuries, while fcli<> London County Coun- , ci! is considering a substantial reduc- [ tion of the education vote. It is only by attacking the economical problem thoroughly and practically that the community will be brought to a right sense of their duty as regards individual thrift. While the Motherland is thus facing the terrible war strain, New Zealand is enjoying unprecedented prosperity, due to high profits on lier produce owing to the war. If a similar economy campaign could be carried out in the dominion there would be no need to add to Britain's burdens as we have been doing by drawing war expenses from the British Government at the cost of the heavily weighted taxpayers. All that is required is sufficient courage on the part of the dominion Government, and then the people of New Zealand could be happy in the consciousness of bearing their own war expenses as well as providing her thousands of brave warriors to uphold the Empire and secure the freedom and safety of their own country.