The Bay of Plenty Times SATURDAY, AUGUST 19th, 1939 NEW ZEALAND’S INDEBTEDNESS

Bay of Plenty Times, Volume LXVII, Issue 12824, 19 August 1939, Page 4

The Bay of Plenty Times SATURDAY, AUGUST 19th, 1939 NEW ZEALAND’S INDEBTEDNESS

The recent debate in the House of Representatives has brought into some prominence the large amount of New Zealand’s public debt. There has been much talk of repudiation, but the emphatic statement of the Acting Prime Minister, the Hon. Mr Fraser, should suffice to dispose of that. The question as to whether any cleavage exists in the ranks of the Government party can be left to the politicians to settle, if words can settle it. The important point for the layman to consider is the rate at which this comparatively large burden is growing,- and the purposes to which the amounts, when borrowed, are being applied. In the main our borrowings have been to provide facilities and conveniences that add to the enjoyment of life. All our railways have been built out of borrowed money, so have our hydro-electric works, and many other things which the people have demanded and now enjoy. Much of the money has been spent on self-supporting works, that do at least pay working expenses and interest. Surely it can never be argued that the borrowing of money has been of one-way benefit—to the lender only ? The benefit? must be mutual or money would be never borrowed or lent, and having borrowed it, it is impossible' to conceive that any Government in New Zealand would seek as a borrower to derive all the benefit and not only deny to the lender his share of it, but punish him for his confidence in our integrity. Keeping step with this growing burden of public debt is that of omr local body debt. This too has been growing at an accelerated pace, and the end of course is not in sight. Probably never before in our history has the handling of public and semi-public finance called .so much for prudent and careful management. In the final analysis the individual must do the paying. Taxetl beyond his ability to pay we approach the slippery path that finds us on the way to involuntary repudiation, no less to be deplored than intentional. We are facing a difficult five years, and to meet them with equanimity requires a substantially increased export revenue. We cannot gamble on that too much, and so a difficult .time for the potential borrower may help us materially to a stabilised . position when that difficult time has passed. •ty'vty ' * - v THOUGHT FOR THE DAY !

I WOULD rather be beaten in the right than succeed in the wrong,—GARFIELD.