THE Wairarapa Age MORNING DAILY. WEDNESDAY, JULY 17, 1907. THE FINANCIAL STATEMENT.

Wairarapa Age, Volume XXX, Issue 8489, 17 July 1907, Page 4

THE Wairarapa Age MORNING DAILY. WEDNESDAY, JULY 17, 1907. THE FINANCIAL STATEMENT.

The Financial Statement submitted to the House, last evening, by Sir Joseph Ward is certainly interesting and comprehensive in character. No doubt there is ample scope for criticism and comment in the Colonial Treasurer's latest Budget, but considered, as a whole, it must be conceded that it is an able statement of the colony's affairs. If there is one fact more than any other that is made claar in the Financial Statement it is the wonderfully prosperous condition of New Zealand —a state of affairs that will further strengthen the already excellent reputation which this colony has in the money market. In vain have pessimists declared that the country was on the verge of bankruptcy—that a policy of wholesale borrowing must end in wholesale disaster. To-day they are the somewhat silent, and, let us hope, willing witnesses of the fallacy of their prophecies. But to revert it ore closely to the Statement, there is no record surplus to chronicle this time—but there is, however, and it is very much more important —a record revenue. The revenue of New Zealand last yeai amounted to no less than £8,399,0(5, an increase of £814,716 on the revenue of the previous year. The chief sources of increase were:— Railways £282,978, Customs £243,629, Stamps £164,464, Land and Income Tax £77,637. The Colonial Treasurer admits that the in-

creases in connection with Railway, | Customs and Stamp Revenues are to ; some extent due to the International J Exhibition, at the same lime his j contention that "thegeneral prosper- J, ity of the country is mainly responsible" must be acknowledged as being absolutely true. The lesson to be learned from the Financial Statement of 1907 is that in the case of a country situated as New Zealand is, and with such possibilities as she has, enormous sums of money may be borrowed with advantage, provided the borrowed money—or the greater part of it —is jpent on reproductive works. We do not say that the Financial Statement proves that the Government has been doing anything of the kind; indeed the Government of this country has failed for many years in th? past to spend what it should on genuinely reproductive works, but it is too early in the day to say whether the Ward Government is guilty of a similar shortcoming. A few more observations, and then conclude for the present occasion—the surplus this yeaf3 amounts to £717,825, last year it was £788,795. Of course, it may be contended that it is "a paper surplus," but everyone who takes an intelligent interest in politics, knows how the surplus is arrived at, and the figures are instructive for those who wish "to run as they read." The gross public debt at March 1907, j was £64,179,040 —an inere...3 of £1,953,000 on the gross debt a'; the termination of the previous year. With reference to revenue it is perhaps worth while to point out that the actual excess over estimated revenue was £595,075. Perhaps if the Colonial Treasurer had been more able to accurately gauge the revenue there would have been a greater expenditure on public works. The North Island Main Trunk Line might even have been finished S Heavy taxation, large surpluses, and a semi-stag-nant condition of public works do not appeal to one as being altogether au fait; but, as we have said, it is somewhat early in the day to either praise or condemn tho financial policy of the Ward Government.