National Finances and Thrift

Press, Volume LII, Issue 15769, 9 December 1916, Page 8

National Finances and Thrift

When we last referred to the condition of the ordinary revehuo account of the Consolidated Fund we pointed out that the figures all went in the direction of showing that the year would end with a surplus not merely greater than the Minister of Financo estimated, but vastly greater than even the huge surplus in tho year 1914-15. We now have the figures for the eight months ended November 30th, which show that while the expenditure was about £350,000 more than in the corresponding period of 1915, the revenue had increased by no less than £1,300,000. If the revenue and expenditure for the whole year bear the same ratios to the revenue and expenditure for the eight months as' are given by last year's figures, we should have an expenditure of about 13 millions and a revenue of about' 17 millions. Perhaps these proportions will not hold good, but the new taxation imposed last year should certainly provide a margin of four millions or more. In giving out his figures, the Acting-Minister of Finance, Mr Myers, did not place any emphasis upon this point, but took occasion to enlarge upon the necessity for thrift. "•New Zealand having embarked on a " policy of self-reliance,'' he said, "it is " her bounden duty to place herself, " during the period of affluence through " which she is passing, in such a posi- " tion that she will not only cease to " rely financially on the Mother Coun- " try after the war, but that she will '

,; on the contrary be a source of " strength to her, financially and oco- " nomically." We believe that these aims can be realised, so far as the

[ transition period after the war is con T j remed, but they require for their realisation ctatesmanship of a good class and a high seriousness on the paTt of the people. In his -unimpeachable counsel Mr Myers does not mention the problems of statesmanship, but we do hope that Ministers will realise that they must set to work to keep down expenditure, and to raise revenue without diverting their energies into such unnecessary and even harmful channels as interference with prices and trade solely for the benefit of the local consumer. Wo are not going to help to win the war, or to make the country thrifty and self-reliant, by harassing the dairying industry or discouraging the free sowing of wheat. To play her part worthily, Mr Myers said the Dominion must do tv/o things above all: "The "first is by the utmost possible increase of output of all the products " that this country is capable of turn- " ing out in such abundance; and the '•second is by a corresponding decrease "in the wasteful spending 0 f mono; "which might otherwise be set asid< "for saving purposes." The people do not seem to recognise the importance of the policy here summarised. W« have State miners deliberately restrict ing output even after a Ministei has granted all the demands made oJ him, and other sections of organised Labour either going on strike or proposing to go on strike. Wo have, simultaneously, encouragement by the Government of the feeling that everybody should live as usual without it costing a penny more than it used to do. Age does not lessen the truth that example is better than precept; until human nature is superannuated peoples whose governors help or cncourago them to err will certainly err. Our own Government have done little to make the people economise, but have done much to turn them from thrift. The Government should take steps to check the importation of goods | from abroad, and it should impose heavier taxation. The people are bearing the existing taxation without difficulty, and as the existing system is so partial as to bo unjust, there is room for a considerable broadening of the basis. The vast majority of tho people are contributing next to nothing t 0 the Treasury; they could contribute a huge sum without feeling the burden an inconvenient one. Mr Harold J?eauehamp, in his address to tho shareholders of the Bank of New Zealand yesterday, gave a perfectly true account of tho facts: "The state of trade and business throughout tho country" is, on the •whole, good. The excellent prices which have been realised for tho past two years for our staple products and tho large expenditure of borrowed money that is in progress in connexion with tho training and equipment of our troops for oversea service, have placed the people generally in a n easv position in regard to resources, raid they are displaying the usual liberality,, if not prodigality, in the expenditure of tho abundant funds that they have available. Traders in luxuries, such as jewellery, soft goods, etc., have been I doing exceptionally well." If this community were to become patriotically thrifty, there would be millions of money available for the Minister of Finance, and statesmanship requires that tho Treasury shall be ablo to take whatever surplus can be spared from the real needs of the community. New Zealand is extraordinarily fortunate in being in a position to make ample provision against the rigours of any economic winter; she will bo extraordinarily foolish if tho opportunity so to savo is neglected. In the last resort wo must look to the Government to see that what is necessary is done, ? or it is manifest that if tho happenings of tho past twenty-eight months havo not availed to teach' thrift to Now Zealanders, nothing can teach them, and there remains nothing for it but tho enforcement of thrift through legislative action.

The fall of Bucharest i 8 confirmed to-day, and there is naturally jubilation throughout Germany and Austria. Athens, too, as might havo been expected after her recent showing, displayed bunting in honour of the event, and has thus plainly decided that the Central Powers are tho prospectivevictors in the war. Whether this view will continue under pressure of the blockade v.luch the Allies have instituted to secure' reparation for the late outrages, remains to be seen. llevert- , ing to Bucharest, tho city was occupied by the enemy on Wednesday. 1 The lloumanian army would 6eem to > have succeeded in eft'eetin c its escape, • and is reported to be eoncentrating • upon Russian reinforcments upon | • chosen lines. It is to bo hoped that the high water-mark of the enemy's success in Roumania has now been nearly reached, and that Moldavia will be saved from the fate of Wallachiu. One of to-day's cable messages appears to indicate that Germany is still busily see-kinjr to blacken England's name in the hope of sowing tho seeds of distrust between the Allies. Lord Grey, we are told, has again emphatically denied the German allegation that he used language implying that one of the reasons why England should participate in the war was that she would be able at any time to threaten to retire, and that he himself would always be ready to undertake mediation to help Germany. In the last week in July the Russian, and French Governments urged Britain to make an immediate declaration of complete solidarity with them. Had Britain done this, whr might have been averted. Viscount Grey thought, however, that he would be more likely to secure peace by maintaining tin attitude of detachment as long ns possible. Afc the same time he made it plain that Germany could not assume that Britain would in all circumstances stand aside. Lord Grey also suggested that Britain might best assist her friends by remaining neutral, so as to have in hand the resource of intervention. Whatever j maj' be said of British diplomacy, it I can at least be said that the German J allegation is a monstrous fiction. : * I In tho current (November) issue of j the Labour Department's "Journal" ,* the Government Statistician's usual

tables relating to the movement of prices arc diversified by a new arrangement of the figures of house rent. Hitherto the Statistician has depended on returns received every six months from representative house agents. It seems that in most cases the returns sent in were only opinions as to average rent where they were not indeed merely the medians, or rentals at which most houses are let. A new' method has now been adopted. Actual figures respecting actual houses of varying size have been obtained, and new tables are constructed on the basis of particulars concerning 11,447 houses. The average weekly rent of each class of house is calculated, and a weighted average of all classes is found for each centre. From this the Dominion weighted average is obtained, and is found to be 14s 10d a week. This merely furnishes a basis for observing fluctuations, and tells us nothing about the average rent paid by any class of persons, if indeed there is any such average. The new system is a great improvement for its value in assisting in the measurement of changes,in prices.

" "Wellington, of course,, is easily tho j most expensive place tj live in, with , Gisborne and Taihapo next. The fig- . ures for the four cities will be of interest :— — <£ 5 a e. d. s. d. s. d. s. d. 3 Hooma o r under 8 1 10 10 7 2 8 0 •1 Rooms .. U fi 14 1 10 7 10 8 5 . .. 14 9 17 4 14 7 13 11 C Rooms ..17 8 21 9 17 0 17 10 7 liooms .. 21 7 23 3 10 11 22 0 S ißooma .. 25 3 31 3 22 7 24 5 9 Rooms ..34 G 54 10 31 7 33 1 Weighted average 17 4 21 8 15 2 15 8 fc. As to the prices of food for the September quarter 1916, therd was another increaso on the figures of the Juno quarter, of a littlo over one per cent. In October last groceries cost 18.2 I per cent, more than in July, 1914, dairy produce 21.29 per • cent, more, and meat 22.47 per cent, more—the general increase in respect of all tho food groups being 20.47 per cent., which, by tho way, is les.s than onethird of the. increase in Great Britain. The Statistician prints his usual tablo showing the costs of an assumed weekly household consumption of certain foodstuffs, in a form to enable a comparison between different dates. The food in the list is stated as costing 19s Shd in July, 1914, and 24s fid in September, 1916. "We fancy that those figures wil) bo accepted by most people as something' like the truth as they know it. "We have not tho least doubt that the .household bills have increased on the whole by the 24.31 per cent, reported by' the Statistician. Wo have just as little doubt that they need not have done so at all. Of course, if people are determined not to abate one jot of their ideas about what they should consume, they naturally must pay more when prices rise a s they have risen everywhere. But a littlo intelligent management and some direct economies would certainly keen the bills down to normal, and if everyone economised, prices would fall again, and nobody's pocket would be hurt i