DISPOSAL OF LOAN MONEY.

Taranaki Daily News, 1 August 1921, Page 4

DISPOSAL OF LOAN MONEY.

The truth concerning the five million loan which Mr. Massey recently floated, in London appears to be gradually filtering through, in much the same way as the bad news of a fatality is gently broken to the relatives. The public of the Dominion were led to believe that the loan was for public works and to replenish the Treasury, but that illusion has been quite -dispelled by the latest statement made by the ActingPremier (Sir Francis Bell), which leaves no room for doubt as to how the money is to be u«ed. Like the six million surplus from last year, the loan proceeds are to vanish from sight, to be swallowed up by obligations in London, including interest and railway equipment. Sir Francis claims that the use bf the money in thia way “will obviate the necessity of trenching on local supplies required for expenditure within the Dominion.” It would be extremely interesting to know the nature and extent of these local supplies, particularly as he has candidly admitted that the Treasury is empty. The surpluses have gone, prices of produce (except for butter and cheese) have fallen considerably, and departmental expenditure has kept on soaring, as may be gleaned from the following fiugres:—During the war period (1914-19) the average increase per year of this expenditure was five per cent., but in the two following years it rose to thirty three per cent, per year, the relative rise in the revenue being sixteen per cent, and twenty-six per cent. It is also interesting to note that in the last two years the expenditure .on the Customs department increased 120 per cent., the railways 81 (with a net revenue decrease of 54 per cent.), the Post and Telegraph 34 (with a net revenue decrease of 82). While it is true that the total revenue of the country increased by 26 per cent, during the last two years, Customs and excise contributed nearly fourteen millions during the two years. The present falling off in trade, and consequent lessening of the yield of income tax and Customs receipts, will still further add to the difficulty of making both ends meet without extra taxation, unless a drastic pruning of expenditure is undertaken. It is perfectly evident that stringent conomy is imperative. It is all very well to urge greater production, but, until the Government sets the example of economy, there is little inducement for the people to make slaves of themselves in order to counteract departmental extravagance.