GOVERNMENT SPENDING

Press, Volume XCVI, Issue 28372, 3 September 1957, Page 17

GOVERNMENT SPENDING

Criticism By Chairman Of J. J. Niven

“It is unfortunate that governments seem unable to curtail their own huge spending programme, which do so much to increase inflation,” said the chairman. Mr G. G. G. Watson, at the annual meeting of Jas. J. Niven and Company Ltd., in Wellington. “The reason so often given that the people demand the spending of these large sums irrespective of whether the economy can stand up to such expenditure, is an answer born of political expediency rather than of sound economics.

“It cannot be too often stressed that inflation unless controlled threatens the destruction of the whole economic fabric. Even mild inflation constitutes a continual attrition o* real capital and is a source of grave hardship to small holders of investments and persons living on fixed incomes. “The continuous fall in purchasing power of fixed incomes means that the investments which were formerly regarded as gilt-edged are assuming some of the characteristics of a gold brick. “Today the soundest investments are either real estate or ordinary shares in a proven and well-managed trading or manufacturing company.” Discussing taxation, Mr Watson said: “I am afraid I see no prospect of any substantial reduction in the present high rates. Without them the welfare State could not be maintained and furthermore any such reduction would be releasing purchasing power to give a further impetus to the already dangerous growth of inflation in the economy.”

Stock Sales "Tile Press' Special Service TIMARU, September 2. PLEASANT POINT Although today’s Pleasant Point sale was one of the smallest for some time, all markets were excellent, being quite up to the high rates which have been ruling at recent sales. There were 60 head of mixed quality fat cattle and one race of fat sheep. Only a few pens of store sheep were offered. Values were:— Fat Cattle.—Fat steers, good £35 to £39 12s 6d, medium £3O to £37 17s 6d, light £24 2s 6d to £29. Fat heifers, good £27 to £32 12s 6d. medium £24 to £26 17s 6d, light £2O 2s 6d to £23 17s 6d. Fat cows, good £24 to £2B 12s 6d, medium £2O to £23 17s 6d, light £l6 12s 6d to £l9 17s 6d. Fat Sheep.—Fat wethers, good £6 10s to £6 19s Id. medium £5 17s to £6 9s, light £5 10s to £5 16s. Fat ewes, good 80s to 89s Id, medium 70s to 795,. light 55s to G9s, shorn 58s Id to 67s Id. Store Sheep.—Ewe hoggets to £6 Wether hoggets 72s to 89s. Wether hoggets, shorn as lambs, to 77s

William Cable Holdings.—A 3J per cent. A preference and a 2J per cent. C preference dividends are payable on October 1, ex September 19. A 2J per cent. B preference dividend is payable on October 31. ex October I.—(P.A.)