“FROM HAND TO MOUTH.”

Taranaki Daily News, 23 April 1921, Page 2

“FROM HAND TO MOUTH.”

NEW ZEALAND’S POSITION. SIR FRANCIS BELL EXPLAINS DOMINION’S FINANCES. UNEMPLOYMENT QUESTION. Speaking to the deputation which interviewed him on Wednesday respecting unemployment, the Acting-Premiei (Sir Francis Bell) referred to the financial position, which, he said, he did not think was very well understood. H$ asked the deputation to try to follow what he would say about the finances of the country. There were two funds in this country. One was the Public Works Fund, which was loan money pure and simple, and the other was the Consolidated Fund, into which the revenue was paid. All works were necessarily done out of the Public Works Fund. In ordinary years a surplus of money in . the Consolidated Fund could be transferred to the Public Works Fund, instead of borrowing. In the present year, we had grave possibilities of a reduction in revenue. The surplus of a consolidated fund must be retained for the purposes of paying over interest, of keeping our civil servants’ employed, and of carrying on the business of the country. PAYING OUR WAY.

In ordinary years they relied on the revenue to do that, but the ordinary position was absolutely impossible now. The Government was the only body which had the money, and it was as impossible to float treasury bills as .it would be for the municipality of Wellington to borrow money in the city. The money was not here.

With a falling Customs revenue, and other revenues falling, the Government had to provide the working expenses out of the Consolidated Fund. If the public would consider that they would know that the balance of surplus revenue carrjed over was necessary to implement the revenue of this year and enable us to pay our way. The Public Works Fund could not be implemented out of revenue, except in the greatest possible crisis. The Public Works Fund could be implemented by borrowing from various sources, but to-day we were living from hand to mouth. Money could be obtained at certain times from firms whose business it was to accumulate funds, but no one could undertake a contract now for the Government and be satisfied he could meet a large amount out of the Public Works Fund. TO PREVENT POVERTY AND HARDSHIP. The idea that the Government was in possession of large sums of money which could be spent on public works was quite wrong. But that there must be money to prevent proverty and hardship was as obvious to the Government as to the deputation. The difficulties were as serious as any a Government ever had to face, but the Government would face them like men and they meant to use the utmost penny to provide that the people of New Zealand would not he out of work. He regarded the returned soldiers position as quite different. There were moneys still available for their repatriation, and it was not correct to that they were likely to suffer to the same degree as the people of New Zealand.