The Finances.

Press, Volume LXVII, Issue 20420, 15 December 1931, Page 10

The Finances.

The meaning of Mr Downie Stewart's financial statement this morning, covering tho first eight months of tho 'inanoial year, is distressingly plain. Either there will be a defiqit at tt e end of the year, or the revenue from at least two sluggish sources will hi.ve ta pick up strongly and rapidly.' The receipts from land and incom > tax will also have to satisfy 'expectations; and it is not at all impossible that many taxpayers will be unable to meet the demands in full, penalty or no. It will be bad enough, of course, if revenue and expenditure do not balance, after the effort that has been made; but it would have been infinitely worse if the effort had not been made—not merely because the deficit would have been so much heavier, but because the country would have taken the drifter's way to a loss of self-confidence and of external confidence. The effort that would then have had to be exerted would have been very much mdre trying an 4 abrupt, and perhaps could not have been mado at all without violent economic dislocation. Clearly Mr Stewart's outline and forecast show that the Coalition was not formed an hour before necessity demanded it and did not in a single point of economy -and retrenchment exaggerate its duty. On the contrary, *wbat it did, though wise and courageous, was not enough; but at least it faces new responsibilities in the strength of popular support. I Their significance is -not in doubt. \ The Government must find means of reducing the national Budget, There j are chances of world recovery, winch would bring increasing relief; but it is impossible to rely on them or to wait for them. To. the limit, of i s ability, the Dominion must work its own salvation. The- dignities are, that burdens will bp added to burdens already ft strain and sacrifices imposed where they are already severe} that certain mitigations, such as the use of reserve funds, are now exhausted; anu *that, as Mr Stewart appears to suggest in his reference to " new external «factors," New Zealand cannot- count on anything but her own resources. But if these difficulties mean a harcl and self-denying struggle, #he consequence of refusing the struggle and succumbing to them is so much worse that nobody with his eyes open will gee any choiee at all.