The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. SATURDAY, JUNE- 23, 1923. REFORM FINANCE.

Auckland Star, Volume LIV, Issue 148, 23 June 1923, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

SATURDAY, JUNE- 23, 1923. REFORM FINANCE.

For the cause that lacks assistance. For the wrong that needs resistance. For the future, in the distance, And the good that we can do.

The interview with Sir Joseph Ward which appears elsewhere in this issue should command the careful attention of the whole body of electors, quite irrespective of their political sympathies or connections. For it is at once a crushing criticism of Reform finance and a striking refutation of the extremely weak and inconclusive and irrelevant arguments recently advanced by Mr. -Massey and his colleagues in their own defence. The people of Xew Zealand have had many proofs of Sir Joseph Ward's financial ability, and the extraordinary success that he achieved when in control of our financial affairs forms one of the most interesting features or the history of colonial Liberalism. The failuro of Mr. Massey and his Ministers to rise to the height of their responsibilities is all the more strongly marked by contrast with Sir Joseph's record; and assuredly nothing that the Premier has said or done since the break-up of the Coalition Ministry has availed to i shake the general conviction that in the sphere of public finance the Reformers are particularly weak, and that they have in this respect no one in their ranks comparable in natural ability or acquired experience with Sir Joseph Ward. It is indeed deplorable that political prejudice should combine with sectarian bigotry to deprive the country of the services of so eminent and distinguished a public servant. In the controversy that recently arose Mr. Massey ridiculed Sir Joseph's statement that England had since the war "decreased her Budget by over £500,000,000"; but Sir Joseph shows that Mr. Massey's figures refer to the increase of the Xational Debt since the war, and not to tho annual Budget—two entirely distinct matters which Mr. Massey has apparently confused. Again, as regards our Floating Debt, Mr. Massey has flatly contradicted Sir Joseph's statement that before he resigned he had made provision to meet our Imperial war loans; but Sir Joseph is ablo to prove by quotations from Mr. Massey's own Budget speech (1922) that ho as Finance Minister had arranged for the gradual extinction of over £29,000,000 of war loans before he retired from the Coalition Ministry. As regards tho debatable system of Company Taxation which the Reformers in desperation have seized upon as a useful fiscal device, the figures quoted by Sir Joseph prove the truth of all and more than all that has been said during the past four years in condemnation of this dangerous and destructive expedient. Sir Joseph Ward illustrates the point with a comparison of taxation paid on banking profits. A Xew Zealand bank which secures about 50 per cent more profit than an Australian bank pays eight times as much in the way of taxation; another bank doing half its business in Xew Zealand and half in Australia pays two and a half times as much taxation on profits made in the Dominion as on earnings in the Commonwealth! Such is Reform Finance, and such are the methods adopted to de\'el*p the resources and promote the prosperity of our country. Our readers may pass—with a smile or a sigh, according to taste —Mr. Massey's complacence in the reduced total of taxation per head of population. It is a consequence not of a reduction in tne burden of taxation, but an evidence that the sources from which taxation is derived have been largely destroyed by the insupportable exactions imposed. But Sir Joseph deals even more drastically with Mr. Massey's allegation that when ■Sir James Allen became Reform Finance Minister he had to find about £30,000,000 to meet requirements for which no provision had been made by his predecessor. It is hardly credible, but it is literally true, that Mr. Massey is really talking about new schemes and commitments undertaken by Sir James Alien, to which for the most part Sir Joseph Ward was strongly opposed. On this topic Sir Joseph is able to "let himself go" with quite pardonable vigpur. For the people of Xew Zealand have not yet forgotten tlje bold stand that he made against the preposterous policy of Sir James Allen in spending on soldiers' settlements and lands the £15,000,000 surplus secured by Sir Joseph's economical and efficient handling of our finances. Sir Joseph quotes passages from "Hansard" recalling the warpings that he addressed to Parliament and the country, protesting vigorously against this proposal, and predicting, in the most definite words, the' "land boom" that followed with its abnormal rise in land values and its disastrous reaction upon the country in general and the soldiersettlers in particular. If Sir Joseph's advice had been followed, and if, instead of spending that £15,000,000 in inflating land values, the Government had reserved the surplus to be used as a sinking fund, and as security for future loans, our financial position would have been immeasurably strengthened and the country would have been saved incalculable injury and loss. It was because Sir Jose]— refused to be responsible for this reckless spendthrift policy, which was initiated in his absence, that he withdrew from the Coalition Ministry. Wlio will .now venture to asert that he was

mistaken? But his disappearance from public life has been nothing less than, a national misfortune, and we believe that every intelligent reader, whether Liberal or Reformer, who follows the arguments set forth in this interview must feel convinced that the country would benefit immensely through his return.