The Daily News. FRIDAY, MAY 13, 1921. AN EMPTY TREASURY.

Taranaki Daily News, 13 May 1921, Page 4

The Daily News. FRIDAY, MAY 13, 1921. AN EMPTY TREASURY.

There was a streak of grim humor in the reply given recently by Sir Francis Bell to a Labor deputation which urged the Government to reconsider the curtailment of public building operations in order to find work for the unemployed. The Acting-Premier stated that although he held the key of the Treasury, there was simply nothing in it, a state of affairs that brings to mind the old nursery rhyme of Mother Hubbard, though with a difference, for while she knew the cupboard "was bare, the dog (in the present ease the public) did not. It can hardly be expected that Sir Francis meant his statement to be taken literally, for Mr. Massey stated, just before he left on his trip Home, that the money available for public works on March 1 was £1,369,841. Subsequently the Prime Minister, in one of his expansive moments, said the surplus of the Consolidated Fund for the financial year just closed was “greater than had been ever imagined or thought of.” Just before that he exclaimed that the financial position of the Dominion was “as sound as anything could ■be,” and that there was sufficient money to see the country through to the end of the present year. These optimistic statements are in strange contrast with those issued by the Acting-Prime Minister and the Minister for Public Works,, who threatens a curtailment of public works expenditure on the grounds of shortage of money. What has become of the surplus and the money in the Public Works account? The public have a right to know. As a matter of fact they are kept in a state of ignorance regarding the finances of the Dominion. The figures in connection with the British national finances are available a day or two after the close of each financial year, and after every quarter as well, but here, with our infinitely smaller accounts and affairs, the information is not available until weeks sometimes months —after each year and each quarter. Until a clear and full statement of the country’s 1 funds is presented it is impossible to test Sir Francis Bell’s pessimistic statements. It would, however, be a calamity if public works were reduced in any way. As the Auckland Herald recently remarked:—“There is no more important duty lying upon the Government than to proceed with the development of the national resources through foul weather and fair, and if relief works become necessary they could take no better form than railway and road construction. Yet in face of this very obvious call for a courageous policy the Acting-Prime Minister has hinted at a very serious limitation of the activities of the Public Works Department.” The Auckland journal adds: “The plain fact is that the public works were never more opportune or necessary in New Zealand than today, and not for several years has there been so good a chance of recruiting labor for national development. Yet this is the moment the Government is apparently choosing for a slackening of effort which may conceivably necessitate the establishment of relief works of an artificial and far less productive character. Sir Francis Bell pleads the necessity for husbanding the national finances, but until he lays before the country a precise statement of the finances, including the accounts for the year ended March 31, he can hardly expect his ipse dixit to go unchallenged. The restriction of public works is so serious a step that it should not be taken if it is avoidable.” There appears to be a good deal of unemployment about just now, and it is likely to be worse before it is better. If public works are reduced the position will be more serious than ever. Unemployment means a curtailment of spending power, and by its adverse* effect on trade increases whatever depression exists. It also points to the necessity for a lowering of the present high wages, which in themselves are restricting industry and enterprise. The Dominion is feel-

ing the depression less than most countries, and if the people unite in a common effort to counteract the wave it will pass and leave no trace behind. Meanwhile prudence, courage and determination to make the best of present conditions will go a long way,to minimise any hardships that may arise.