The Press Monday, January 17, 1916. The National Finances.

Press, Volume LII, Issue 15489, 17 January 1916, Page 6

The Press Monday, January 17, 1916. The National Finances.

The details of the national finances, as given by Sir Joseph Ward in tho statement published on Saturday are, upon the whole, satisfactory. For the nine months ended December 31st last the revenue was £795,520 more than for tho corresponding period of 1914, and there appears to be no reason why the end. of the financial year will not see an increase of a million sterling. There are two points to bo remembered in considering these figures. In tho first place much of the increase is duo to the new taxation and the higher charges made by the Railways and Postal Departments. Of the increase, nearly half has come from j; taxation on land, the" actual increase i under that head being nearly £350,000

—a fact -which becomes mora striking when set beside tho fact thart the increase in the Customs revenue; was less than £30,000. Of tho total iucre'asc of £79.5,000 odd, £333.899 was yielded in December alone—evidence tha.t the new taxes and charges aro bringing in the money in a pretty substantial measure. The second point to be noted, is that even with the large increase that has taken place the revenue will amount to not much more than the revenue that we might havo expcctcd had tho war i and the strike not interfered with the i receipts for 1913-14 and 1914-15. The expenditure for the nino months has increased by £16-9.152, but as the interest and sinking fund charges increased by .C199.5G0, there thas actually been a small decrease in tlioexpenditure of the Departments. The only Department in which any increase- worth mentioning:: is recorded is tho Education Department. We are glad to notice the evidence that expenditure if, being kept in hand by the Prime Minister and his colleagues, but the fact is ifchat even a more substantial reduction is proper and desirable. Prior to the-war it was generally agreed that the Departmental expenditure had for years been grow- j ing out of all reason, and it was tho duty of the Government to supply selves energetically to a, policy of economy. To our mind a reduction of about £30,000 over a period of nine months is quite'inadequate to the needs of the situation.

In that portion of his statement which wo give to-day—ivo do not know why it was not despatched by the Press Association—tho Minister makes some interesting and important observations. He does not anticipate having to borrow money for public works until well on in 15)17. This is satisfactory so far as it goes, but it -would have been still more satisfactoiy had tho Minister been able to announce a decision by tho Government "to cut do.wn public works expenditure to tho barest minimum while the war lasts. Sir Joseph "Ward referred to the suggestion made in some quarters that a largo war loan should be raised locally. Ho pointed out, as wo ourselves have done, that such a loan would result in making money very dear. What we havo never been quite able to understand is the idea that wo ought forthwith to dispense with the loans wo aro obtaining from Britain and lock up permanently the free capital which we are certain to require very badly after tho war is over. If tho advances Britain is making to us wore really troublesome to the British Government, there would be nothing to urgo against a local loan, and wo havo never denied that a lime may come when tho British Government may ask us to raise war loans in 'our >own market. But for the present there is authority, as weighty as' that of any advocate of a large local loan, for; the belief that no such arrangement is really necessary. This is th© Chancellor of the Exchequer, who, in discussing* the enormous financial strength of Britain, stated in November that long before money ran short in Britain tho supply of men in Germany would bo exhausted. Some people in New Zealand, .however, not only ignore that fact, but ignore also the fact that we cannot .be in "top strong" a financial position. They would do well to consider tho warning given by Sir Joseph . Ward, namely, "that it is the time after the " war for which tho country must now "prepare, so that we shall bo able to "meet tho new conditions that .must "arise without any great internal dis- " location of the public finance."