The Sun WEDNESDAY, OCTOBER 28, 1914. FINANCE IN WAR TIME.

Sun (Christchurch), Volume I, Issue 226, 28 October 1914, Page 6

The Sun WEDNESDAY, OCTOBER 28, 1914. FINANCE IN WAR TIME.

There was an illuminating discussion on the piiblic finances in the House last night, and two facts stand out very boldly. The first is the serious position the Dominion has got into through its dependence ou borrowed money, and the second is the anxiety of our politicians to make political capital out of the situation on the eve of the elections. The Liberals accuse the Reformers of failing to effect the financial reforms they undertook to initiate, and the Reformers retort that they are doing very much better than the Liberals did in the past or could do in the present circumstances. The public,' in judging between them, ' may very well be guided by the fact 1 thai the difference is in the ratio of 16 to 14. That is to say that the Reformers went to "uncle" for 14 millions since they have been in office, while in the preceding two and a half years, the Liberals tapped him for 16 millions. There has been no financial reform worthy of the name in so far as the amount of borrowed money is concerned, under the present Government, but it is only fair to say that it is very difficult to see how there could have been any. With the country crying, out for development, the railway construction programme years in arrear, hundreds of thousands of acres of land requiring opening up and roading, and innumerable applications for State loans | by local bodies and private h-drviduals, how can any Government dependent on I the popular vote do anything else but | borrow aIL the money it. can obtain on I reasonable terms for these purposes? There are financial reforms that might be effected in regard to the keeping of accounts, such as the charging of a good deal. of the public works against the Consolidated Fund, and using the alleged surplus, so dear to the heart of every finance Minister, in its proper place, instead of transferring it to the Public Works Fund, and spending it on things that are a legitimate charge against the ordinary revenue. But that is merely a matter of bookkeeping, and would not lessen either the demand or the necessity '. for expenditure on de'velopment works. It is ( clear from the Minister's statement that the Public Works Fund is almost exhausted, .' and that in order to. carry on Mr Fraser's programme there must be transfers from other accounts. The position of the country resembles very closely that of a farmer who is unable to raise a -mortgage, and has to resort to bills. "The best the Government can do at present is to obtain temporary advances, with the expectation of being raise a loan at a later date to repay them. It is no use the Liberals pretending they could do better. A party that put the reserve fund- securities up the spout in time of peace, cannot throw stones at the expedients being adopted by its opponents in a crisis such as the Empire is passing through at present. There is every reason to believe that the Government is acting to the best of its ability in a very difficult situation^'-and in common fairness fhey should get credit for it.