The Daily News. WEDNESDAY, AUGUST 13, 1919. A GRAVE WARNING.

Taranaki Daily News, 13 August 1919, Page 4

The Daily News. WEDNESDAY, AUGUST 13, 1919. A GRAVE WARNING.

The pessimistic review of the financial situation in Britain, as presented to the House, of Commons by Mr Austin Chamberlain (Chancellor of the Exchequer) last week, once more emphasises the need for increased production, the reduction of non-essential expenditure, and the elimination of • waste. Although the Chancellor's remarks' were somewhat alarming, he was careful to state there was nothing in the position beyond the nation's power if it tackled the problem with the same resolution it displayed in the war. It may be assumed that Mr Chamberlain purposely gave the nation a shock, probably for the reason that he considered nothing short of that would arouse the community to an adequate appreciation of? the serious nature of the financial position. A large excess of imports over exports has been only too evident since the war, and it stands to reason that unless this unsound trading is rectified that national bankruptcy can only be averted temporarily by increased taxation, and by degrees that expedient will fail and with it the .whole fabric of British, pre-emi-

nence, A country's solvency depends on exactly the same principles as a private business, and though there are the taxpayers to fall back oil, their capacity to meet financial burdens depends on the measure of prosperity the country is enjoying—a somewhat complicated piece of machinery which depends on all the parts being in good running order to bear the required strain, so that if any portion gets out of gear there is danger of a stoppage unless the right means arc taken to remedy the defect. Mr Chamberlain has placed his fingers on the weak parts and calls upon the, nation to apply tin 1 remedies before disaster occurs. In this he is showing the true instincts of a statesman, and his warning should not fall on deaf earn. Side by side with the Chancellor's review is a statement by Mr Hoover bearing on the same question. He draws attention to the fact tliat the whole world is faced with the gravest danger of food shortage, and emphasises that the workers must save humanity; also that eight hours is the maximum manual work that workers can do efficiently, but tye insists that they must really work full time, meaning thereby that' ther" must be no waste and that tl. 1 greatest measure of production possible must be aimed at. The warning to the people of Britain applies with equal force to New Zealand and the other units of the Empire. A close examination of the position reveals the extent to which the Dominions are dependent on the Motherland as the chief market for their produce and the foundation of their financial security. Britain by virtue of her great industrial wealth became the .centre of the world's trade and I banking systems, but the enormous drain on her resourc.es, the j dislocation of her industries and maritime transport trade owing to the war has brought about a crisis that will need the utmost skill and determination to overcome. Increased production is a means of i readjusting the balance of imports and exports, and that, in turn, reacts on the Dominions, for the more Britain produces the less she will require from overseas and the Dominions would have to. find other markets for their wares. According to Mr Hoover this should not be difficult, as the whole world is faced with tin 1 gravest danger of food 1 shortage, yet if the bottom is knocked out of the British market every country will he in a bad way, and prices are likely to fall. No matter how the situation is viewed, the urgent need for increased production, the reduction of expenditure and the elimination of waste are plainly apparent. New Zealand is enjoying a long period of unparalleled' prosperity, but who can tell its duration? We hope and believe that it will last, yet in view of the warning of Mr Chamberlain it would be folly not to profit by his advice. The Dominion has accumulated a heavy national debt and stands committed t# a very heavy annual expenditure. If all goes well there will be no difficulty in meeting the demands, provided "the same resolution is displayed as in the war." We look to the Government to give thf. lead in conducting the affairs of the country on strict business lines; we should take care that our public bodies adopt the same course, and the units will then be impressed with the necessity for falling into line. If the Empire is to maintain its pre-war position and solve the problems which have ensued from the war there must be a full and complete development of all our resources, and all classes must unite in the effort ta emerge from the colossal weight of the war burdens, stronger and better fitted for the struggle they have undergone. Above all the great lessons of the Avar must be absorbed, the foremost being unity of effort and aim, coupled with determination. With the Empire, as with other affairs, the strength of the chain has to be measured by its weakest link, the weak link-sit present is production, and this cannot bo emphasised too strongly. There is nothing alarming about the position if the right course is adopted by Britain and followed by the rest of the Empire. We know the danger that threatens and how it can be warded off. Let us not then live in a Fool's Paradise.