The Daily News. WEDNESDAY, AUGUST 6, 1919. THE FINANCIAL OUTLOOK.

Taranaki Daily News, 6 August 1919, Page 4

The Daily News. WEDNESDAY, AUGUST 6, 1919. THE FINANCIAL OUTLOOK.

Those who are accustomed to' looking ahead cannot fail to be impressed with the serious nature of the task that falls to the lot of the Minister for Finance at the pres ent time, for 'not only have the heavy charges in connection with the war to be met, but the process jof reconstruction will involve a considerable burden on the taxpayers of the country. It is not likely that the Finance Minister will have any surprise packets to unload on his return, but there is a feeling that the people ought to be given a full, frank and reliable statement concerning the prospective income and expenditure of the Dominion, together with an indication of how long it will be before the first payiment of the German indemnity is iikely to come to hand, and the probable total to be received. It may, however, be taken for granted that it will be some time before any of that money can be handled by the Dominion Treasury, so that little relief from the present taxation can be expected. There are certain departments *of the State which will need exceptionally large grants of money for the work they control, and though there is a nest egg of accumulated

surpluses, if progress is to be stud-

ied and advanced, it will probably !be necessary to borrow a considSpftble ggm

| State's activities on a proper basis I in view of the new conditions that now prevail. First and foremost, after our war liabilities, comes public works, which during the war were allowed to lapse. The time has now arrived when the whole system of expenditure on public works requires to be reeasted. The opening up of the remaining Crown and Native lands that are at present unproductive demands a new and systematic policy of road and railway construction, while the need for greater production cannot be met unless transport facilities are supplied to the hinterland settlers who have for many years been left to battle with conditions that are a disgrace to those in authority. Part of the reserve fund now invested in England should be used for this purpose, supplemented by borrowed money. It is not of the slightest use to nibble at this problem, which needs bold treatment on sound, economical lines. Besides giving employment to large numbers of returned sol • diers, the expenditure will have a direct bearing on incieascl production, provided the authorisations are not' governed by political wire pulling, and as a general election is shortly to take place this danger is apparent. Far better to have no allocations at all than to perpetuate a system that stands condemned . as political expediency. Another department that can no longer be starved without serious results is that of education, and the large amount imperatively necessary for this work must I)' 3 raised out of revenue and loan, the latter for rebuilding purposes. It has justly been contended that the people will willingly pay any sum that is actually required for the satisfactory physical and mental training of the young, for it is the best asset of the State, yet one of the most neglected in several respects. The best teachers are needed, and these cannot be secured unless the remuneration is on a scale far higher than the present. A large number of schools and teachers' residences require rebuilding on modern lines; hostels are needed for technical arid agricultural students; sanitary arrangements need revolutionary treatment, and ample money should be provided for scholarships and'research work. King George recently said: "It rests with us to build a new world to replace the shattered fabric of the old wprld. The. weakened consciousness of the nation demands new developments and the removal of grave defects in the social system," These new developments must have their foundation in the schools, so that it is more than ever necessary to secure and retain the most enlightened teachers and to house the children in buildings that will facilitate education and promote health. Money and good management are evidpntly required for the railways. It is no use attempting to disguise the fact that more attention has been paid to showing a profit on the j running of the railways than in I timely repairs, renewals and additions. This is the old "penny wise and pound foolish'' policy that inevitably leads to a day of reckoning. What the exact state of this service is to-day is impossible to say, but grave fears are entertained that the shortage of coal is more an excuse than a justification of the present restricted service. Those who have travelled much on the railways have their own views on this matter, and those views are in the direction of the need of a large expenditure to properly equip our railways for the greatly increased work they have to perform. The coal shortage has emphasised the need for expediting the scheme of supplying hydro-electric power throughout the Dominion, to provide which several millions will be required, and as this enterprise would be self-supporting the necessary capital should be raised without difficulty, either by the Government or by the municipalties, but so as to fit in with one general scheme when linked up as a national undertaking. Apart from the housing problem, probably the most urgent before the country to-day, there are many other pressing demands for money that will have to be met, not all at once, but in the next few years, hence the necessity for concentration on ways and means for it is not only a question of providing the money, but doing so in a way that will make wealth bear its full share of the work of reconstruction.