The Daily News. MONDAY, OCTOBER 3, 1821. REVENUE AND EXPENDITURE

Taranaki Daily News, 3 October 1921, Page 4

The Daily News. MONDAY, OCTOBER 3, 1821. REVENUE AND EXPENDITURE

The task that devolved on Mr. W. D. Stewart (aeting-Minister of Finance) in the House on Wednesday, was not one that, by any possible means at his command, could be made the vehicle of optimism. At the outset he had to confess that for the past five months the expenditure outran the revenue by four and a half millions. This, of course, was not an unexpected phase of the Dominion’s finances, and though the Minister contended that the figures reflected the economic conditions prevalent throughout the world, it is hardly likely that any consolation was afforded members on that account. Mr. Stewart is well aware that the Government is being subjected to hostile criticism concerning the financial sta e of the Treasury, but i when he asserted that people who were smarting from a financial strain were only too willing to listea to that hostile ■M’itijjjaiU ae

[merely voiced a fact that has been [demonstrated conclusively on many occasions in history. During the war, national deficits were the rule, borrowing imperative, and liabilities piled up without a thought of consequences. In normal times the Government that cannot pay its way has a very uncertain tenure of office, very little regard being paid by the bulk of the people to those exceptional circumstances for which no provision has been made, it being considered that Ministers, like business men, should cut their coat according to their cloth. On this point Mr. Stewart was particularly vague, merely stating that, revenue “was not always a .matter the Government could control, and that expenditure was a most difficult subject.” That view altogether ignores the first principle of sound finance, the duty of looking ahead and providing for likely contingencies. Again and again has the chairman of directors of the Bank of New Zealand (Mr. Beauchamp) gravely warned the Government and the people of the Dominion of the trend of events affecting the financial situation, but his well-meant and weighty advice had no more effect than if it had teen a voice crying out in the wilderness. With a Micaw-ber-like faith the Government has merely waited for something to turn up—and is still waiting. As the present is not an age of miracles. this taihoa policy is a menace to the life and usefulness of the Government. It is a time of such serious portent that nothing but effective measures for dealing with a situation that is rapidly growing worse will avail. Possibly it would be too severe a strain on the pride of Ministers to seek and follow the advice of the leading business and financial experts of the Dominion. The Home Government did not hesitate to avail itself of such outside advic?, so why should the Dominion Governmen not follow such a wise course ? Ominous as is the financial outlook at the present time, it is as nothing compared with what it will be in the immediate future unless the requisite means are adopted to meet the crisis. It is practical action that is needed, not talk. Of one thing the Government may rest assured, namely, that they will receive the full support and backing of the country if they confess their inability to cope with the financial trouble and call to their aid those who can, and will if asked, give the best advice in their power. The situation is too serious for tinkering methods to be used, and fully justifies the adoption of exceptional methods. Should any mishap occur to the market for dairy produce the Dominion’s main prop would give way. We do not refer to this in any way as being likely, but in order to emphasise the slenderness of the support afforded by the one industry that is now flourishing but is subject to fluctuations ovei' which the producers have no control. The adjustment of income and expenditure is a matter that cannot be delayed with impunity.