A NOTE OF CAUTION

Taranaki Daily News, 14 October 1916, Page 8

A NOTE OF CAUTION

FTMIANCIAL OUTLOOK IN NEW ZEALAND. ' j MR. MYERS' VIEW. I Auckland, Oct. 11. The Hon. A. M. Myers, Acting Minister of Finance, states that the total ordinary revenue for the six months ended September 30 amounted to £U,340.G27, against £5,450.000 in the corresponding six months of the preceding year. The difference in favor of t.he current year ( £894,127) is ascribed pavMy to additional taxation and partly to biiovancy of the revenue due to the continuance of commercial prosperity The expenditure from the Consolidated Fund for the six months was £0.25(1,903, against £5.038,419, for the correspond- | ins si', months last year, an increase of £3'g,484, which was accounted for wholly by the war bonus and increased payments for interest and sinking fund. The excess of revenue over expenditure for the first half of the amounted to .€02,724. "In placing: before the public these figures, which disclose such satisfactory evidence of the prosperity of the Dominion. it must not be overlooked that the •jlairns on the Consolidated Fund for war pensions and for interest and sinking fund charges oil war loans, etc., are ever increasing amounts," said Mr. Myers, "and that had it not been for the : ncroased taxation imposed last year it would have been impossible for the Treasury to have met the additional burden. I further venture to utter a note of caution to the public against accepting the present favorable financial position of the country as evidence that the difficulties of finance are at an end. It is impossible to predict what the future may bring forth, but it is certain that with the rapidly incre.ihing expenditure it will still be necessary for all Government Departments to continue to exercise tlmt strict economy in all matters affecting expenditure out of appropriations made by Parliament which the figures disclose. As regards the Public Works Fund, although Parliament last year as a precautionary measure authorised (he borrowing of 1 additional amounts for public works, it will noi j be necessary for the present to rai?e any money* under that authority. It is satis'actory to recall the fact that sins? the commencement of the war the Minister of Finance, Sir Joseph Ward, wisely decided to provide additional investment,? in London in liquid form in case of any unforeseen circumstances arising to necessitate an unexpected call on the Consolidated Fund. This lias been done by investing amounts from time to time in Imperial War Loan securities. Amounts so invested form a portion of the surplus of last year and unexpended balances of various accounts which are not, during the period of the war, required for expenditure," After pointing out the need of thrift, the Minister added: "In view of the in-definltenr-ss of the duration of the war and the consequent steady growth of our expenditure, we must not overlook the fact that it is incumbent on every citi/.en to recognise more tjian ever his obligations to the Empire to work harder for ever-increasing production, and spend less than he did previous to the outbreak of hostilities, so that notwithstanding the unparalleled prosperity at present enjoyed by the Dominion we may, by the maintenance of a policy of economy and thrift, be able to increase the extent of our assistance to the Empire in providing not only sufficient raoiiey to meet the cost of carrying on the H'ar to a successful conclusion, but also in supplying a large proportion of her ever-increasing requirements in meat, wool, and dairy produce" i