The Daily News. TUESDAY, DECEMBER 30, 1919. RENEWING- NATIONAL STRENGTH.

Taranaki Daily News, 30 December 1919, Page 4

The Daily News. TUESDAY, DECEMBER 30, 1919. RENEWING- NATIONAL STRENGTH.

The Ijjlng, in his speech prorogu ' ing the British Parliament, ex : pressed confidence that though th< difficult times had not yet beer passed, the course was set fail* to , wards a renewal of national ! strength and prosperity. Thai . confidence was well justified, provided it was based on the assumption that there would be in evidence a determination on the part ; of the people to carry out the work of reconstruction with a will equal to that exhibited towards ! the achievement of victory. The reaction which set in after the war was perfectly natural in view of -the long period of compulsory self-sacrifices. In place of the strictest economy, there appeared an outburst of spending that amounted almost to a mania, and the fear is- that it may continue, at great risk to national stability and prosperity. So far as the Dominion is concerned, its exceptional prosperity might seem to permit of extensive private expenditure. Certainly, money is being poured out lavishly, and there are evidences on all sides that little heed is being given to the serious financial burdens which the community has to bear in the future. The national capital has been heavily mortgaged, and the interest and sinking fund charges alone amount to £6,197,000, and war pensions will absorb a further two millions, while the total expenditure under permanent appropriations is estimated at nearly forty-five per cent, more than last year, while the departmental expenditure is expected to be nearly £4,000,000 greater than last year. These figures should of themselves act as a brake on private expenditure, for though the times are good, and the outlook promising as regards high prices for produce, yet with an ever-increasing national expenditure—inevitable during [ the reconstruction period—together with the increased cost of liv-| ing, the need for the strictest economy is apparent. Mr. Massey fully stressed this recently when he! said:

"We must all take our coats off, and work as we have never worked before. If we apply ourselves with the necessary energy for the next three years we shall establish such a steady prosperity that all will be well and the country will never look back."

1 It is this gospel of energy and thrift which, not only' the people, but the Government, must take to heart, especially when it is considered that for the eight months of the current financial year the expenditure amounted to £14,439,599, an increase of £3,292,166 over the totals for the previous year. For some years to come there must be further borrowing if the country is to be developed as it should be and the necessary transport facilities provided, and there is every probability that the bulk of the capital required will have to be raised in the Dominion. Thrift, economy and efficiency are, and will be, quite as much needed now and in the future as during war time. The country needs every pound that can be spared and every effort that can be made towards increased production, for an emergency may arise at any moment that may inyplve serious consequences unless there is a strong reserve to draw upon. It is the unexpected that has to be provided for as well as the ordinary calls. The financial stability of the country rests upon the ability of the people to build up a strong bulwark of savings, and it is the omission to recognise this fact that cannot be too strongly stressed. Now that Christmastide is ovei\ it would be both wise and prudent to curb the spending habit and enter upon the New Year with a determination to assist to the utmost in the work of the reconstruction period. The soundness of the country is belyond question, but there is so j much unrest in the world that great care must be used to place the prosperity of the Dominion in the forefront of our outlook, so that, no matter how it may be assailed financially, it will weather any storm that may arise. No more. favorable opportunity than at present exists has ever been at the command of the people of the Dominion to place themselves and the country on a secure financial foundation. The war expenditure may be regarded, from a national financial standpoint, as so much waste which has to be made good. That is the task which now awaits the country, and needs the utmost jenergy and capacity, and perhaps self-sacrifice, to achieve.