DOMINION'S FINANCE.

Press, Volume LVII, Issue 17061, 4 February 1921, Page 6

DOMINION'S FINANCE.

"NO COUNTRY SOUNDER." STATEMENT BY* MB MASSEY. (press association tklegkah.\ AUCKLAND, February 3. Taxation, and criticisms of tit* amounts being lewd in New Zealand at present, wero dealt with by tba Primo Minister at a luncheon tendered to him at Pukekohe to-day. The principal .adverse criticism 2er%£led against tho Administration jm that tho Government was sinning by increasing taxation. Mr Massey said ba wisihed his licarers to try to recollect om . instance in which increased taxation had been collected. After referring to expenditure. Mr Massey said that more money would ba required, though he dia not know rrben it would be needed. It would be necessary ta go on to tho open market foe* it._ Money would be needed lor wed*, bridges, hydro-electric power, educatieE. and numbers of other purposes. The country, Mr Massey pio<v?ded, had got on very well with the reconstruction problem, hnd had nothing % complain of at present. Criticism com-, ing from a New Zealander iu I.cndoa recently had declared that unk&s gr«a. care was taken, tlio country -nould "w faced with bankruptcy. If be re wera two words whit'll the'citizens oi N«w Zealand should never use. One was "repudiation'' and the other -jras "bankruptcy.'' There was not tfe# slightest tear of cither. When the isaperial requisition came to an end tbfnt had been a sort of interregnum, <hmn» w'Jiich money was not coming. It had scarcely begun to come yet, and it -sraald not come with the same promptitude as under the requisition. In a way, he would like to see, another requisition, if it could come without war. It was tl;e best thing that had ever happened for NeV Zealand. Another factor to ba considered, Mr Massey went on, was the increase of imports from England. The consequence was that, the Customs duties had fc-va coming in with a speed that had never been equalled before. Two years' Customs duties had been collected in or.e year. This could not bo maintained. While this year's returns would be far above the average, next year -would be proportionately below fhe average, aad ijt was of next year that he had to think. Ho had to set aside a reseme to tide over this period. He bopej that when the next financial year carae to an end tbe public accounts or tbe Financial Statement would stum- that there had been a very considerable earing on the part of the Treasury and the different Departments. Referenco had been ma do to tfo» £15,000,000 accumulated surpluses, it had been suggested that tio Government had wasted it. That money fad been spent on placing soldiers on tie iand and finding houses for them. Tbe greater part of it was earning 4 per cent. Tho Government had either to take it. to borrow other money, or to break the 'country's 'word to the sol- ' diera. If tbe money bad been bxmni it would have cost 51 for would have required a «inVing 1 per eent. As to the war loan, tfcat was only one item. The next Fmaneoti statement would show that then tad been a 6aving all round. Mr Massey insisted that the coMUy was absolutely sound. No wucU* cculd be sounder.. Roughly, tho mir debt and the ordinary debt to £200,000,000. There were Sap everything except £60,000,000. T&e difficulty for the next eighteen wst&s woula be to get the revenue to wet the accounts.