The Daily News. SATURDAY, DECEMBER 16, 1922. RIGID ECONOMY IMPERATIVE.

Taranaki Daily News, 16 December 1922, Page 4

The Daily News. SATURDAY, DECEMBER 16, 1922. RIGID ECONOMY IMPERATIVE.

Although it is not possible to regard the need for drastic administrative economy in New Zealand in the same way as in the Motherland, yet this need is far more urgent than is generally realised. Apart from the obligation to make both end meets, there is an insistent demand for the reduction of taxation. In alluding to this demand for less taxation apd the most rigid economy in Britain, the Daily Mail recently remarked: “We can only say that unless the Government spend less and tax less, Britain may soon be m as grave a plight as some of the Continental nations.- All over the Continent currencies are collapsing. The Russian rouble has gone, the Austrian florin has gone, the German mark has gone. The turn of British currency may come some day unless spending is stopped and the dangerous Eastern commitments are terminated.” This view may seem rather exaggerated, but it has to be admitted the economic position in Europe is about as bad as it can well be without collapsing altogether. When the Coalition Government at Home was brought to an end by a Conservative coup, it was generally considered that Mr. Bonar Law’s regime would be promptly characterised by a new policy of strict economy, friendliness to France, diplomacy in the Near East, and generally directed to peace and progress. It now seems that the policy of Mr. Lloyd George is to be the policy of Mr. Bonar Law, except that the control of the British delegates of the League of Nations is to be transferred from Sir Maurice Hankey’ and his subordinates and placed in the hands of the Foreign Office. The question has been asked: “Was it worth while turning the Government out in order to send Sir Maurice Hankey round the corner?” 'lt may be also asked: What has that phase of policy to do with eeon&my? Possibly little directly, but indirectly it indicates that Mr. Bonar Law’s policy is practically indistinguishable from that of his predecessor; that he had a won derful chance, which he has thrown away, and to all appearances, instead of a full measure of economy being instituted, there will be a disposition to increase rather than to decrease taxation. Already the new Chancellor of the Exchequer has intimated that the Government cannot “at present” reduce taxation, and that it will be a squeeze to balance next year’s Budget., and this fact is causing much concern. In view of the result of the general election in the Dominion, and the unsatisfactory state of parties, much concern may* be felt over the question of finance and taxation and it is quite possible that the fate of the present Government may depend upon matters relating to economy and taxation. There is no need to refer to the attitude of the Labor Party on both these issues, except to say that it is the workers alone that this party considers, while their views on taxation are a menace to the prosperity of the primary and secondary industrialists, as well as to capital in all departments. This matter of economy and taxation is far more serious than is generally supposed to be the ease, and it was the extraordinary financial and economic conditions which now exist that especially called for a strong, courageous, resourceful and reliable Government. The time has certainly arrived when country must be the first consideration, and party only a matter of secondary importance. It may be claimed that the true test of patriotism must be applied to all who have the real interests of the country at heart, and unless this is realised and acted upon in the right spirit it will be a severe blow to the country. Just as in the Motherland the need for spending less and reducing taxation is imperative for the protection of the currency, so in New Zealand it is equally imperative for a similar policy as well as to guard against the avowed programme of the Labor extremists.