The Daily News THURSDAY, NOVEMBER 9, 1922. GOVERNMENT ECONOMY CAMPAIGN.

Taranaki Daily News, 9 November 1922, Page 4

The Daily News THURSDAY, NOVEMBER 9, 1922. GOVERNMENT ECONOMY CAMPAIGN.

The statement made by Mr. Massey at Pukekohe on Monday, relative to the progress that is being made in reducing public expenditure, should be hailed with much satisfaction throughout the Dominion. The figures quoted by the Premier leave no room for doubt that an appreciative measure of success is being achieved in cutting down public expenditure, and the pity of it is that the process was not practically carried out some years earlier. It is laid down by all economists and financial experts that only by the strictest watch over expenditure and its reduction to the. lowest possible limits compatible with efficiency and safety, can taxation be reduced. Where differences of opinion exist is concerning the scope and extent of the paring down business. It is inevitable, that in this matter, as well as in most other cases, the tendency to adopt the line of least resistance is in evidence, with the result that while many small economies, which press hardly on the poorer paid members of the public service, are carried out, large sums are voted that cannot really be afforded by the country. The Government is on the horns of a dilemma. On the one hand there is the very natural desire to present the financial status of the country in a most optimistic light to the world at large, and especially to Britain, and as evidence in point to make over liberal payments and contributions that the Dominion cannot afford, yet which are expected to improve the country’s credit and financial strength. On the other hand, it requires a special brand of courage to openly admit that for a few years to come New Zealand must get down to bedrock with her expenditure, and so will be unable to spare any money other than that absolutely required to meet her bare necessities. Then her position would be thoroughly understood, and her policy applauded. No one doubts the splendid resources of the country, and the capacity of the people for hard work, but there must be a direct incentive to greater production, something vastly different to paying heavy taxation, and that can only be evolved by a stringent embargo on all expenditure that can be avoided both in the Dominion and in the Ohl Country. What may be termed the first cheering ray of improvement in the Dominion’s finances made its appearance in the October returns, when for the first occasion for some time the revenue showed an increase, mainly due ,to Customs and railway receipts. Besides this the expenditure side of the account shows savings effected in general outgoings of nearly two millions sterling without taking into account the reduction of outgoings under Special Acts of over four hundred thousand. Naturally the interest bill will grow larger with every new loan floated for the Dominion, but it has to be remembered that most of this new money is being invested in revenue producing projects, which, if not too much weighted with overhead charges, should more than return the interest and sinking funds in connection therewith, besides indirectly adding to the greater productivity of the country. At the same time, Mr. Massey’s warning that the country cannot go on borrowing indefinitely, although not given for the first time by many, is more than justified by the heavy load capita of the national debt. Why the people of the Dominion may ; well take heart of grace over the I loans for developing the country and its resources is that at last ' construction work is being carried ; out on up-to-date lines with special labor-saving that make for speed and economy. The difficulty in the past has been to press f-rward with sufficient promptitude and energy. It is to be hoped that the reign of taihoa is now over. Certainly it is quite