The Press. WEDNESDAY, APRIL 18. 1906. LABOUR AND THE BORROWING POLICY.

Press, Volume LXII, Issue 12481, 18 April 1906, Page 6

The Press. WEDNESDAY, APRIL 18. 1906. LABOUR AND THE BORROWING POLICY.

Wo are glad to see that at the Trades and Labour Conference yesterday a protect was entered against the extiravagaut Iwrrow-ing i>oHcj- into whidi New Zealand has been plunge<J. Lord Avebury, in commenting recently on the alarming gitjwdi of municipal indebtedness in llivglnird. pointed out that for every pound spent by any public body out of the rates and taxes, there was a pound let« for the citizens to spend privately. The Labour delegates are quire right in their contention that, our heavy burden of debt is especially liurtt'u! to the interest*; of the workers'. Not only have they to pay a heavy share of the in'.ert'st in the ehupe of taxation, : but the fiycal burden, tends to crippl-j I industry and check enterprise, and so

ieseens the field of employment. Wo do not think, with some of the speakers, thai irt would be possible to stop borrowing entirely, and at once. What we do say is tliat the issue of loans should be very much restricted, and in the case, of Public Works onJy those which are absolutely necessary and are really reproductive should be undertaken. Wo would put a stop to all political roads and bridges, but we would findsh a work hke the North Island Trunk Railway with tJ«e greatest expedition, so tiiat it may speedily become interest-earning, instead of interest-creating. One of the speakers yesterday suggested that borrowing would be harmless if i* were conducted solely within the colony. It is evident, however, that the Government have gone as fnr in that direction as it is safe or prudent to go. Even in raising loans locally they have found it neoeeeary to' give the option to the borrowers of having both interest and principal payable in London or the Australian Colonies. Moreover it was found that for the Government to borrow locally beyond a certain amount had a tendency to raise the general rat© of interest, thus increa, ing the cost to farmers, traders and' Dthers requiring financial accommodation. One of the delegates yesterday let drop a remark which leads ue to fear th.it he is a victim of the delusion that the State has only to priint a pertain number of pieces of paper and it can become as rich as it Yikvs, and therefore, need not go to the London market for any purpose whatever. Wo are glad to see that the Conference as a whole was .superior to this crude financial heresy. It is extremely gratifying, however, 4o find that the workers realise the. dangerous position into which we are drifting, owing to the. abandonment of prudence and srlf-oon-trol in the raising of loanp. If they will continue to make their protest against the policy of extravagance, the. Government will, in the end, be obliged to listen to them, and We may see an improvement brought about. The workers could do no greaUr service both to themselves and to tho colony as a whole, than to maintain a firm front against excessive borrowing and tho taxation following in its train.