The Daily News. MONDAY, OCTOBER 22, 1917. THE FINANCIAL BURDEN OF THE WAR.

Taranaki Daily News, 22 October 1917, Page 4

The Daily News. MONDAY, OCTOBER 22, 1917. THE FINANCIAL BURDEN OF THE WAR.

Bow many people in the Dominion realise that New Zealand's army is now costing approximately twenty-five* pounds per head of the population? Only those who have taken the trouble to study the figures published relating to that expenditure. The majority of the people cannot grasp the fact that the yearly cost of this army approaches twenty-five millions sterling, yet such is the case, and if this money had to be paid out of revenue instead of out of loans there would be large numbers who would find the burden far greater than they could bear, for it must be remembered that the -vcrr expenditure is over and above the ordinary charges inherent to the Government of the country. It is, however, time that serious attention should be given to the Dominion's financial position in regard to its effect on every unit of the community, for instead of the outlook indicating a reduction it points to an increase which will become heavier the longer the war lasts. Expenditure of this nature has a peculiar habit of growing while we sleep as well as during our hours of business and other activity. When New Zealand went to the Motherland's aid on the outbreak of hositilites no good patriot for a moment gave the question of cost a moment's consideration. The need arose and the people met in '■With eager and zealous ardor that proved the hearts of the Empire were beating in unison for freedom, justice and the ause of right as opposed to that of might. There was a feeling then that is equally' strong—perliaps even stronger—to-day that we would send our last man and spend our last shilling to defeat Prussian' militarism and the infamies for which it stands, and if the war is greatly prolonged the test of the genuineness of the determination will certainly be applied, and it will not fail. We shall not only have to face an increasing expenditure, but also a decreasing revenue, yet so solid is the prosperity of the country there is no ground for anxiety—much less alarm—if only the people as a whole will bend their backs to the task of discarding luxuries and ordering their lives and affairs consonant with the great responsibilities arising from the war, and loing their utmost to increase production and eliminate non-essentials as well as by avoiding waste. Above everything there should be no blowing hot and Cold, ! no fits of optimism alternating with pessimism. Once the people grasp the extent of the country's liabilities and face the position with calm courage and determination the rest will be easy. In this attitude a decided lead should be given by members of the Government, for if their public utterances are '*jumpy" they will affect the nerves of the people. In ordinary times effective points may be scored by drawing a gloomy picture of the disastrous results of yielding to demands for expenditure, and equally effective may be optimistic statements regarding the country's financial buoyancy and strength, but in a grave crisis like the present all such methods should be rigorously repressed. There is too much at stake just now to permit of unnecessary sensation.=i that tend to unhinge

i'uoVii: confidence. The figures suplied l),y the Minister of finance in the Budget and subsequently should inspire confidence- in the country's ability to -airy the war burdens without undiu strain and to make- a just and equitable provision for all those affected by the call to arms. The falling off in revenue—both as regards customs and railways may be inconvenient to the Min-

ister of Finance, but it should be a good •sign that the people were becoming more imbued with the need for sacrifices, which emphasises the necessity for the exercise of the most enlightened economy in every department of the State. The three great needs of the period are: Energy in production, equality of sacrifice and the strictest economy; these, backed up by firm courage and confidence will win through the.war troubles so successfully that when peace comes and normality supervens, it will find the people well prepared to enjoy the many blessings arising from the lessons of the war and enable them to appreciate the more the prosperity of this favored Dominion.